NextEnergy Solar Regulatory News (NESF)

THIS ANNOUNCEMENT, AND THE INFORMATION CONTAINED IN IT, IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, JAPAN, SOUTH AFRICA, ANY MEMBER STATE OF THE EUROPEAN ECONOMIC AREA (OTHER THAN THE UNITED KINGDOM, IRELAND, THE NETHERLANDS AND SWEDEN) OR ANY OTHER JURISDICTION IN WHICH THE SAME WOULD BE UNLAWFUL OR RESTRICTED BY LAW (COLLECTIVELY, "RESTRICTED JURISDICTIONS") OR TO US PERSONS (WITHIN THE MEANING OF REGULATION S UNDER THE US SECURITIES ACT OF 1933, AS AMENDED).

THIS ANNOUNCEMENT DOES NOT CONSTITUTE OR FORM PART OF ANY OFFER TO SELL OR ISSUE, OR ANY SOLICITATION OF ANY OFFER TO PURCHASE OR SUBSCRIBE FOR, ANY SECURITIES IN THE COMPANY IN ANY RESTRICTED JURISDICTION, NOR SHALL IT (OR ANY PART OF IT OR THE FACT OF ITS DISTRIBUTION) FORM THE BASIS OF, BE RELIED ON INTO IN CONNECTION WITH OR ACT AS AN INDUCEMENT TO ENTER INTO ANY CONTRACT, COMMITMENT OR INVESTMENT DECISION IS RESPECT OF ANY SUCH SECURITIES. WITHOUT PREJUDICE TO THE FOREGOING GENERALITY, THIS ANNOUNCEMENT DOES NOT CONSTITUTE A RECOMMENDATION REGARDING ANY SECURITIES.

INVESTORS SHOULD NOT PURCHASE OR SUBSCRIBE FOR ANY SECURITIES REFERRED TO IN THIS ANNOUNCEMENT EXCEPT ON THE BASIS OF INFORMATION CONTAINED IN A PROSPECTUS TO BE PUBLISHED BY THE COMPANY IN NOVEMBER 2016 IN CONNECTION WITH THE COMPANY'S SHARE ISSUANCE PROGRAMME.

31 October 2016

NextEnergy Solar Fund Limited (the "Company")

Update re. New Share Issuance Programme

As previously announced, shareholders approved the disapplication of pre-emption rights in respect of the Company's proposed share issuance programme in respect of up to 350 million New Ordinary Shares and/or C Shares (the "Share Issuance Programme") at an extraordinary general meeting of the Company held on 11 October 2016.

The Company is currently in negotiations regarding a pipeline of c.560MW of short-term acquisition targets, of which c.130MW are already the subject of letters of intent or in advanced negotiations. The majority of the pipeline assets are either already in operation and benefitting from Renewable Obligation Certificates ("ROC") 1.3 support banding or pre-construction which are expected to qualify under the ROC 1.2 support banding before the ROC support for newly-constructed assets terminates on 31 March 2017. Accordingly, there is a significant opportunity to deploy additional funds with favourable returns given prevailing market conditions.

Given the favourable market backdrop and strong pipeline, and in response to continuing investor demand, the Directors expect, subject to market conditions, to publish the prospectus relating to the Share Issuance Programme (the "Prospectus"), and to announce an initial placing and offer for subscription of new shares pursuant to the Share Issuance Programme (the "Initial Issue"), in November 2016. It is expected that the new shares issued pursuant to the Initial Issue will be admitted to the Official List, and that dealings in such shares on the London Stock Exchange's main market for listed securities will commence, in November 2016. 

The Directors are pleased to announce that the Company has already received confirmation from an institutional investor of its firm intention to subscribe for new shares with an aggregate issue value of £55 million pursuant to the Initial Issue.

A further announcement regarding the publication of the Prospectus and providing full details of the Initial Issue will be made in due course.

For further information:

Notes to Editors:

NextEnergy Solar Fund

NESF is a specialist investment company that invests in operating solar power plants in the UK. Its objective is to secure attractive shareholder returns through RPI-linked dividends and long-term capital growth. The Company achieves this by acquiring solar power plants on agricultural, industrial and commercial sites.

NESF has raised equity proceeds of approximately £350m since its initial public offering on the main market of the London Stock Exchange in April 2014. It also has credit facilities of £210.1m in place (Macquarie and Santander: £88.5m, MIDIS: £55.0m, Bayersiche Landesbank: £44.9m and NIBC: £21.7m).

NESF is differentiated by its access to NextEnergy Capital Group (NEC Group), its investment manager and adviser, which has a strong track record in sourcing, acquiring and managing operating solar assets. WiseEnergy is NEC Group's specialist operating asset management division, providing solar asset management, monitoring and other services to over 1,250 utility-scale solar power plants with an installed capacity in excess of 1.7GW. NextPower II is NEC Group's private equity fund with initial commitments of €150m, investing in operating solar power plants and focused on consolidating the substantial, highly fragmented Italian solar market.

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

Important Notice

Each of Cantor Fitzgerald Europe, Fidante Capital, Macquarie Capital and Shore Capital is authorised and regulated in the United Kingdom by the FCA and acting only for the Company in connection with the matters described in this announcement. Persons receiving this announcement should note that none of Cantor Fitzgerald Europe, Fidante Capital, Macquarie Capital or Shore Capital will be responsible to anyone other than the Company for providing the protections afforded to customers of Cantor Fitzgerald Europe, Fidante Capital, Macquarie Capital or Shore Capital, or for advising any other person on the matters described in this announcement.