(Alliance News) - NextEnergy Solar Fund Ltd announced on Thursday it signed its first co-investment for a 25% stake in a solar project currently under construction in Cadiz, Spain.
The Guernsey-based investor and operating asset manager in the solar sector said energisation of the 50 megawatt utility-scale solar project is expected to take place in the first half of 2022.
Once energised, the project will benefit from a power purchase agreement for the sale of electricity for an initial five-year period, NextEnergy explained.
The company's 25% stake represents a total investment of EUR10.6 million. It will be funded NextEnergy's revolving credit facilities.
The remaining 75% stake in the solar project is being funded directly by NextPower III ESG, an environmental, social and governance solar fund focused on utility scale solar assets, and another investor in the fund.
In June, NextEnergy made a commitment of USD50 million to NextPower. This investment marks the NextEnergy's first co-investment transaction through its commitment into NextPower.
Shares in NextEnergy were down 0.2% at 102.41 pence on Thursday morning in London.
By Heather Rydings; heatherrydings@alliancenews.com
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NextEnergy Solar (NESF)