(Alliance News) - US Solar Fund PLC on Friday said it has agreed to buy eight 39 megawatt solar power projects located in the US state of North Carolina.
This comes after the London-listed investment fund announced in October that it signed an exclusivity agreement with Greenbacker Renewable Energy Corp for the acquisition of these projects.
The investment company said the acquisition of the portfolio from Greenbacker Renewable Energy Co LLC will be funded with about USD36 million in cash. It does not currently expect to use debt but may consider raising debt against the portfolio in the future.
Subject to the completion of final diligence, US Solar Fund said it expects to complete the acquisition in early January next year. As the portfolio is currently operational, it will generate immediate revenue for the company upon acquisition close.
This forms part of US Solar Fund's plan to invest "heavily" into solar power projects in the US with expected returns of at least 7.5% over the life of all its solar power assets.
Chief Investment Officer of New Energy Solar Manager Liam Thomas said: "We are excited to acquire this operating portfolio from Greenbacker. The projects will provide the company with immediate cash flow as all eight projects are operating and generating revenue from electricity sales under long term contracts with Duke Energy."
New Energy is an investment manager of US Solar Fund.
Shares in US Solar Fund were untraded on Friday in London, last quoted at USD1.04 per share.
By Ife Taiwo; ifetaiwo@alliancenews.com
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Us Solar Fund (USFP)