Last checked at 
12 Jul 2023 17:14
NextEnergy Solar Fund - Update from QuotedData
12th July 2023
Recycling champion
From an operational standpoint, NextEnergy Solar Fund (NESF) is doing well. As we discuss on page 5 of this note, the board, encouraged by a high proportion of predictable revenue, has felt comfortable in declaring an inflation-matching 11% increase in NESF's dividend per share, and is confident that this will be well-covered by earnings.
In the face of a difficult market for fundraising (expanding the fund by issuing new shares), NESF's managers propose recycling capital from its portfolio of subsidy-free solar assets. In the short term, the proceeds would be used to reduce borrowings (gearing) and fund a potential share buyback. Longer-term, the proceeds would be used to secure new solar and energy storage opportunities that present a suitable return profile.
After a good 2022/23 financial year, new investments could boost the NAV and cashflows further. Share buybacks could turn the tide on NESF's share price discount to net asset value (NAV) and lower debt levels could calm investors' nerves. Combine this with a prospective dividend yield of 9.1% and NESF's future looks bright.
Full Research:
https://quoteddata.com/research/nextenergy-solar-fund-recycling-champion-qd/
This research is also available free on our website www.quoteddata.com where you will also find news, performance data and factsheets on every London listed Investment Company. QuotedData writes and distributes research on a number of quoted companies, facilitates meetings between those companies and existing and potential investors and assists in raising additional capital where required.
NB: Marten & Co was paid to produce this note on NextEnergy Solar Fund Limited and it is for information purposes only. It is not intended to encourage the reader to deal in the security or securities mentioned in this report. Please read the important information at the back of this note. QuotedData is a trading name of Marten & Co Limited which is authorised and regulated by the Financial Conduct Authority. Marten & Co is not permitted to provide investment advice to individual investors categorised as Retail Clients under the rules of the Financial Conduct Authority.
QUOTEDDATA50 Gresham Street | London EC2V 7AYTel: +44 (0) 20 3691 9430
www.quoteddata.com | research@quoteddata.com | www.martenandco.com