(Alliance News) - Bluefield Solar Income Fund Ltd on Friday announced a strategic partnership with GLIL Infrastructure, with both parties investing over GBP200 million total into a UK portfolio.
The Guernsey-based income fund, which focuses on UK-based renewable energy assets, will invest GBP20 million to acquire the 247-megawatt UK-based solar portfolio from Lightsource bp. GLIL, a group of UK pension funds investing in core UK infrastructure, will invest GBP200 million.
Bluefield Solar also said it will repay GBP10 million of its revolving credit facility, reducing its holding companies' RCF balance to GBP167 million.
Bluefield said both parties have signed a memorandum of understanding with GLIL to form a long-term strategic partnership, which will commit them to investing together in UK-focused solar assets.
This includes a provisional agreement for GLIL to acquire a 50% stake in a Bluefield-owned portfolio exceeding 100 MW in early 2024 but in line with the portfolio's current valuation.
Subsequently, Bluefield and GLIL intend to commit capital to a selection of assets in Bluefield's development pipeline, expected to be grid connected over the next two to three years.
"Current capital market conditions make it difficult for us to raise new capital using the instruments which have served the company and its shareholders well through the past ten years," explained Chair John Scott.
He continued: "The strategic partnership with GLIL is an exciting and significant development for the company; it creates the opportunity for both parties to invest in [our] sizeable renewable energy pipeline...while responding to shareholder feedback in reducing our short-term debt position."
Bluefield also reiterated its plan to declare a full-year dividend of 8.80 pence per share, up from 8.60p for the year that ended on June 30.
"The world is crying out for more solar power and Cop28 has called for a tripling of capacity by 2030," Scott said. "We see tremendous potential in this partnership as a means to help Bluefield Solar play its part in achieving this goal."
Bluefield Solar shares were up 1.2% at 116.40p in London on Friday morning.
By Emma Curzon, Alliance News reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2023 Alliance News Ltd. All Rights Reserved.
Bluefield Solar (BSIF)