Bluefield Solar Regulatory News (BSIF)

16 August 2021

Bluefield Solar Income Fund Limited

('Bluefield Solar' or the 'Company')

Acquisition of Wind Portfolio and Ready to Build Co-located Solar and Battery Project

Completion of First Wind and Battery Storage Investments

Bluefield Solar (LON: BSIF), the UK income fund focused on acquiring and managing UK-based renewable energy and storage projects to provide growing dividends for its shareholders whilst furthering the decarbonisation of the energy system, is pleased to announce the successful completion of two acquisitions.

The Acquisitions

The first acquisition is the purchase of an operating portfolio of 109 small scale onshore wind turbines, as outlined in the Company's recent prospectus, for approximately £63 million (including working capital and transaction fees) and is immediately earnings accretive.

The second acquisition represents the grid connection and associated land of a fully consented, ready to build a 45MWp solar asset and co-located 25MWp battery project for approximately £5 million from EQUANS (re-branded from ENGIE Renewables). This co-located project is based in northeast Lincolnshire and is expected to begin construction during 2022. Yelvertoft, a 50MWp solar project developed through the Company's proprietary pipeline and announced in the Company's 31 December 2020 Interim Statements, is expected to begin construction at the same time.

Financial Update

Prior to the recent fundraise of £103 million (net of costs) the Company had drawn £90 million of its £100 million short term revolving credit facility ('RCF'). The fundraise proceeds were used to pay down the RCF entirely, leaving £13 million available to the Company in cash resources in addition to the then undrawn £100 million RCF. These acquisitions, plus development expenditure incurred to date of approximately £3 million, mean the Company has now redrawn approximately £60 million of its RCF. As a result, total outstanding debt is approximately £340 million.

Using the Company's 31 March 2021 unaudited net asset value ('NAV') of £460.5 million as a reference and including these acquisitions as well as the Company's equity raise in July 2021 of £103 million (net of costs), the leverage of the Company is approximately 38% of Gross Asset Value ('GAV').

John Rennocks, Chairman of Bluefield Solar, said: "Following strong support from our shareholders in the recent oversubscribed equity raise, we are delighted to have completed the acquisition of the 109 wind turbines outlined in the Company's recent prospectus, as well as our first co-located solar and energy storage project. Both investments mark important steps in fulfilling Bluefield Solar Income Fund's strategic objective of adding complementary renewable assets, up to 25% of GAV, to its high performing UK solar portfolio. The 109 wind turbines are immediately accretive to earnings and further underpin our projected results and dividends for the financial year ending in June 2021 and beyond, with exceptionally high levels of regulated revenues. This is our first investment in energy storage and the Board views this as an attractive source of diversification for our income, with significant future valuation uplift potential from adding solar and storage assets in development. The Board and our Investment Adviser continue to carefully assess a strong pipeline of attractive opportunities across both primary and secondary markets."

For further information:

About Bluefield Solar

Bluefield Solar is a UK income fund focused on acquiring and managing UK-based renewable energy and storage projects to generate long term dividend growth for its shareholders whilst furthering the decarbonisation of the energy system. Not less than 75% of the Company's gross assets will be invested into UK solar assets. The Company can also invest up to 25% of its gross assets into wind, hydro and storage technologies. The majority of the Company's group's revenue streams are regulated and non-correlated to the UK energy market. Bluefield Solar owns and operates one of the UK's largest, diversified portfolios of solar assets with a combined installed power capacity in excess of 613 MWp.

Further information can be viewed at www.bluefieldsif.com

LEI Code 2138004ATNLYEQKY4B30

About Bluefield Partners LLP

Bluefield Partners LLP was established in 2009 and is an investment adviser to companies and funds investing in renewable energy infrastructure. It has a proven record in the selection, acquisition and supervision of large-scale energy assets in the UK and Europe. The team has been involved in over £4 billion renewable funds and/or transactions in both the UK and Europe, including over £1 billion in the UK since December 2011.

Bluefield Partners LLP has led the acquisitions of, and currently advises on, over 100 UK based solar PV assets that are agriculturally, commercially or industrially situated. Based in its London office, it is supported by a dedicated and experienced team of investment, legal and portfolio executives. Bluefield Partners LLP was appointed Investment Adviser to Bluefield Solar in June 2013.