NextEnergy Solar Regulatory News (NESF)

LEI: 213800ZPHCBDDSQH5447

13 August 2020

NextEnergy Solar Fund Limited

("NESF" or the "Company")

Net Asset Value Update and Interim Dividend

NextEnergy Solar Fund, the solar power renewable energy investment company, is pleased to announce its unaudited Net Asset Value ("NAV") as at 30 June 2020.

Financial highlights

· Net asset value per ordinary share of 98.4p (31 March 2020: 99.0p)

· Ordinary shareholders' NAV of £576m (31 March 2020: £579m)

· First interim dividend of 1.7625p per ordinary share for the year ending 31 March 2021

 Operational highlights

· Electricity generation +18.3% above budget

· Total capacity installed of 755 MW (31 March 2020: 755 MW)

· 90 operating solar assets (31 March 2020: 90)

The movement in NAV per ordinary share was driven primarily by the following factors:

· Additional generation during the period (1.0p positive impact per ordinary share)

· A reduction in short-term inflation forecasts (1.9p negative impact per ordinary share)

In addition to the above, NESF has engaged a third consultant to provide power price forecasts for the UK market. The Company utilised the average across all three consultants for NESF's long-term UK power market projections and the forward market prices for the next two years for the un-hedged portion of the portfolio. NESF believes this methodology is more robust in projecting future power prices in the UK and reduces the volatility resulting from any individual consultant's forecasts deviating from consensus projections.

The Company's June 2020 factsheet is available on the Company's website (nextenergysolarfund.com).

Interim Dividend and Scrip Dividend Alternative

NESF is pleased to announce an interim dividend of 1.7625 pence per Ordinary Share for the quarter ended 30 June 2020, payable on 30 September 2020 to shareholders on the register as at the close of business on 21 August 2020. The ex-dividend date is 20 August 2020.

The Company will also be offering shareholders a scrip dividend alternative to this interim dividend and will shortly publish its annual Dividend and Scrip Dividend Alternative Circular for the financial year ending 31 March 2021. The scrip dividend alternative is subject to shareholders approving the renewal of the scrip dividend authority at the Company's Annual General Meeting to be held in September 2020. The Scrip Share reference price will be announced on 27 August 2020, with elections to be made by 4 September 2020.

For further information:

 Notes to Editors[i]:

A constituent of the FTSE 250 Index, NextEnergy Solar Fund ("NESF") is a renewable energy infrastructure investment company that invests primarily in operating solar power plants in the UK (it may invest up to 15% of its gross assets in other OECD countries). The Company is committed to ESG principles and responsible investment and makes a meaningful contribution to reducing CO2e emissions through the generation of clean solar power. NESF has been designated a Guernsey Green Fund by the Guernsey Financial Services Commission and has been awarded the London Stock Exchange's Green Economy Mark.

NESF has a diversified portfolio comprising 90 operating solar assets, primarily on agricultural, industrial and commercial sites, with a combined installed power capacity in excess of c.755MW. As at 30 June 2020, the Company has gross assets of £987 million, of which 88% is invested in the UK, and net assets of £576 million. The majority of long-term cash flows from its investments are inflation-linked.

NESF's investment objective is to provide ordinary shareholders with attractive risk-adjusted returns, principally in the form of regular dividends, by investing in a diversified portfolio of primarily UK-based solar energy infrastructure assets. The dividend is payable quarterly, and the Company has announced a dividend target for the year ending 31 March 2021 of 7.05p per ordinary share. 

NESF is differentiated by its access to NextEnergy Capital Group ("NEC Group"), its Investment Manager, which has a strong track record in sourcing, acquiring and managing operating solar assets. WiseEnergy is NEC Group's specialist operating asset management division, which since its founding has provided operating asset management, monitoring, technical due diligence and other services to over 1,500 utility-scale solar power plants with an installed capacity in excess of 1.7 GW.

Further information on NESF, NEC Group and WiseEnergy is available at nextenergysolarfund.com, nextenergycapital.com and wise-energy.eu.

[1] Note: All data is as at 30 June 2020, being the latest date in respect of which NESF has published financial information.