Bluefield Solar Regulatory News (BSIF)

19 November 2013

BLUEFIELD SOLAR INCOME FUND LIMITED ("BSIF")

Unaudited Interim Management Statement

Bluefield Solar Income Fund Limited (the "Company") is publishing this Interim Management Statement ("IMS") in accordance with DTR 4.3 of the FCA Handbook.

This IMS relates to the period from 12 July 2013 to 18 November 2013.

Unless otherwise noted herein, the financial information provided in this IMS, and the asset valuations underlying that financial information, are unaudited.

Highlights

· Four acquisitions announced to date, all in line with target return expectations with significant pipeline coming behind;

· Market conditions and regulatory support remain favourable;

· Full deployment of the initial public offering ("IPO") net proceeds expected to be completed substantially ahead of expectations.

Background Information

The Company was admitted to trading on the Main Market of the London Stock Exchange on 12 July 2013. Since that time, and in accordance with the Prospectus dated 25 June 2013, the Company, under the advice of its investment adviser, Bluefield Partners LLP (the "Investment Adviser"), has made a number of acquisitions that meet the investment objective of the Company, namely:

The Company seeks to provide shareholders with an attractive return, principally in the form of semi-annual income distributions, by investing in a portfolio of large scale UK based solar energy infrastructure assets with a focus on utility scale assets and portfolios on greenfield, industrial and/or commercial sites. 

The Company is targeting an initial dividend in respect of the first financial year ending 30 June 2014 of 4 pence per ordinary share, rising to 7 pence per ordinary share in respect of the second financial year ending 30 June 2015 and with the intention of this increasing annually thereafter in line with RPI.

Investment Activity

In the period to the date of this announcement, the Company has announced four acquisitions for an aggregate consideration of over £55m and an expected capacity close to 48MWp (megawatt peak). The Company has acquired a 100% interest in each of the plants.

Current Portfolio

Hardingham, Goosewillow and Hill Farm

Hardingham in Norfolk, Goosewillow in Oxfordshire and Hill Farm in Oxfordshire, are all under construction. Hardingham and Goosewillow are largely completed and are expected to be grid-connected and revenue producing in December 2013. Hill Farm is expected to be grid-connected by March 2014. The capacity of the three plants, on completion, will be c.41MWp and were acquired for a consideration of just over £46m. All three are expected to qualify under the 1.6 Renewable Obligation Certificate ("ROC") regime. Hardingham and Hill Farm are being constructed by Solarcentury, one of the leading solar contractors in the UK. Goosewillow is being constructed by Ikaros Solar, the experienced Belgian solar contractor.

North Beer

North Beer was the third acquisition announced by the Company and is the first operational asset. The plant is located near Launceston in Cornwall. The 6.87MWp plant was acquired for a consideration of £9.35m. It was grid-connected in March 2013 and qualified under the 2 ROC regime. It was built by Parabel, an experienced German solar contractor.

Future Pipeline

The Investment Adviser has agreed terms on a further three large scale sites that will take the Company to over 75% committed. Combined with the four acquisitions already announced by the Company, the new assets are expected to take the Company's total commitments to c. £100m, with a total energy capacity of c. 83MWp. It is also negotiating on a further pipeline of £175m and the Company expects the proceeds of the IPO to be fully committed in December 2013.

Financial Information:

As at 30 September 2013, the Company's net asset value per share was 97.84p. This net asset value per share reflects the cost of issuance, quarterly operating costs and interest on cash deposits. The Company has no borrowings.

A summary of the net asset value per share and share price of the Company for the period is as follows:

* Closing Mid Price

Outlook

The Company is pleased with progress made so far. The four acquisitions announced are in line with the target return expectations. Deployment of the net proceeds of the IPO is expected to be significantly ahead of schedule. Market conditions continue to appear attractive and there is a growing base of primary and secondary assets that are potential acquisition targets for the Company.

The development and construction of large-scale solar installations in the UK are going through a very significant growth phase in 2013. This is characterised by installations that are significantly larger than previously seen in the UK market. The Company's prospectus highlighted the Department of Energy & Climate Change's ("DECC") capacity target for large scale solar as 4.6GWp (gigawatt peak) by 2017. The current total installed is currently less than 1GWp, giving the potential for significant growth over the coming years. Based on information collated by DECC, by the end of March 2014 there are expected to be 50 large-scale solar installations each with a capacity of 10MWp or greater, totalling over 700MWp.

Regulatory guidance from Government appears unchanged and supportive, with Ed Davey, the Secretary of State for Energy and Climate Change, saying on 5 November 2013 "The prospects for renewable energy in the United Kingdom have never been better. This Government is putting in place the most robust and stable long-term framework for the transition to low-carbon energy this country has ever had".

The Company's interim dividend is expected to be paid in February 2014.

Enquiries:

James Armstrong / Mike Rand / Giovanni Terranova

Bluefield Partners LLP - Company Investment Adviser

Tel: +44 (0)20 7078 0020

Tod Davis / David Benda / Jamie Lillywhite

Numis Securities Limited - Company Broker

Tel: +44 (0)20 7260 1000

Nick Bastin / Liam Clark / Giles Abbott

Capital MSL, Financial Communications

Tel: +44 (0)20 7307 5330

Kevin Smith

Heritage International Fund Managers Limited - Company Secretary & Administrator

Tel: +44 (0)1481716000

This IMS has been prepared solely to provide additional information to shareholders as a body to meet the relevant requirements of the UK Listing Authority's Disclosure and Transparency Rules and the IMS should not be relied on by any other party or for any other purpose. It does not constitute an invitation to subscribe for or otherwise acquire or dispose of securities in the Company in any jurisdiction. The information contained in this IMS is subject to updating and amendment, and does not purport to be full or complete. No reliance may be placed for any purpose on the information contained in this IMS in connection with the Company or the purchase of securities in the Company. This IMS does not constitute or form part of any offer to issue or sell, or any solicitation of any offer to subscribe or purchase, any investments nor shall it (or the fact of its distribution) form the basis of, or be relied on in connection with, any contract or commitment whatsoever. Any decision to purchase shares should be made solely on the basis of the information contained in the final prospectus issued by the Company.

The potential acquisition by the Company of any of the investments referred to in this IMS is subject, among other things, to those projects reaching legal completion and to the Company having conducted satisfactory due diligence in relation to such investments. There is therefore no guarantee that any of the investments will be acquired and if they are on what terms. 

This IMS contains forward-looking statements that are based on current expectations or beliefs, as well as assumptions about future events; forward-looking statements are not guarantees of future performance. The Company's actual investment performance, results of operations, financial condition, liquidity, distribution policy and the development of its financing strategies may differ materially from the impression created by the forward-looking statements contained in this document. Subject to their legal and regulatory obligations, the Company and its Investment Manager expressly disclaim any obligations to update or revise any forward-looking statement contained herein to reflect any change in expectations with regard thereto or any change in events, conditions or circumstances on which any statement is based.

Note to editors

About Bluefield Solar Income Fund Limited (the "Company" or "BSIF")

BSIF is a newly incorporated Guernsey-registered investment fund focusing on large scale agricultural and industrial solar assets. The Company raised gross proceeds of £130m in July 2013 through an IPO of shares on the main market of the London Stock Exchange.

The Company seeks to provide shareholders with an attractive return, principally in the form of semi-annual income distributions, by investing in a diversified portfolio of solar energy assets, each located within the UK, with a focus on utility scale assets and portfolios on greenfield, industrial and/or commercial sites.

Website: www.bluefieldsif.com

About Bluefield Partners LLP ("Bluefield")

Bluefield was established in 2009 as a specialist investor into solar energy. Bluefield's team has a proven track record in the selection, acquisition and management of large scale energy and infrastructure assets in the UK and Europe.

The managing partners have been involved in over £355m of solar photovoltaic ("PV") fund and/or transactions in both the UK and Europe since 2008, including over £170m in the UK since December 2011.

Bluefield was appointed the investment adviser to the Company in June 2013.

Website: www.bluefieldllp.com