Us Solar Fund Regulatory News (USFP)

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, TO US PERSONS OR INTO OR WITHIN THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN, OR ANY OTHER JURISDICTION WHERE, OR TO ANY OTHER PERSON TO WHOM, TO DO SO WOULD BE UNLAWFUL. THE INFORMATION CONTAINED HEREIN DOES NOT CONSTITUTE OR FORM PART OF ANY OFFER TO SELL OR ISSUE, OR ANY SOLICITATION OF ANY OFFER TO PURCHASE, SUBSCRIBE FOR OR OTHERWISE ACQUIRE, ANY INVESTMENTS IN ANY JURISDICTION.

28 May 2020

US SOLAR FUND PLC (USF, the "Company")

FIFTH BINDING ACQUISITION AGREEMENT

FOUR SOLAR PROJECTS (61MWDC) IN OREGON

US Solar Fund plc (LON: USF (USD)/USFP (GBP)) is pleased to announce the signing of binding agreements for its fifth acquisition. Further to the announcement of exclusivity on 27 February 2020, the Company has executed binding agreements to acquire cash equity interests in an approximately 61MWDC portfolio of four mechanically-complete utility-scale solar power projects located in Oregon (Portfolio). USF's acquisition of the Portfolio is expected in the near future, simultaneous with financial close of tax equity financing and a binding loan commitment from the long-term debt provider.

The Company will acquire the Portfolio from Southern Current LLC (Southern Current), a leading US solar developer and EPC contractor. All four projects in the Portfolio will sell 100% of their electricity output under long-term power purchase agreements (PPAs) with Portland General Electric (S&P rating: BBB+); an Oregon-based utility servicing 1.9 million customers in and around Portland. The PPAs set escalating prices with fixed annual percentage increases for a weighted average term of 11.2 years.

While the four projects are mechanically complete, plant commissioning is subject to the interconnection utility re-starting work following COVID-19 restrictions, expected to occur in the near future. As part of the transaction, the Company's purchase price for the acquisition is payable in stages, with the full purchase price not at risk until the utility completes the work and the plants are operational and selling power under the PPAs. Additionally, the purchase price is subject to downward adjustment dependent on the length of time until the plants are operational.

USF will fund its acquisition with approximately US$23 million of cash on hand and US$43 million in long-term bank debt. Following the acquisition, and consistent with previous announcements, USF intends to use the approximately 15% of IPO proceeds remaining for further acquisitions or to partially pay down Acquisition Four's existing project-level debt (with any such a paydown being at USF's option). USF may also consider raising equity for a full paydown and re-financing of Acquisition Four's existing project-level debt.

The expected returns are in line with those anticipated in the Company's investment objective, as set out in its prospectus dated 26 February 2019. The Portfolio will generate revenue for USF immediately upon full plant commissioning, which is expected to occur once the utility's COVID-19 restrictions are lifted.

Gillian Nott, Chair of USF, said:

"USF is delighted to have signed binding agreements for its fifth acquisition, bringing the total portfolio to 41 projects in four states, all with long-term investment grade offtakers. The near-complete construction stage of this acquisition means these assets will begin generating cashflow for investors almost immediately and, once they are commissioned, over 60% of the Company's portfolio will be fully operational."

Liam Thomas, Chief Investment Officer of USF's investment manager New Energy Solar Manager, said:

"With the addition of these four solar plants, the USF portfolio grows to a capacity of 443MWDC with a weighted average power purchase agreement term of over 15.4 years. During these challenging global times, long-term PPAs with contracted price growth such as this latest project, can deliver cashflow stability to investors. These four projects in Oregon will soon begin to generate stable and predictable revenue for the fund. We continue to see a wide range of opportunities in the US solar market and look forward to the further growth of the Company in line with its investment objectives."

Further information on the Company can be found on its website atU32T 32http://www.ussolarfund.co.uk

For further information, please contact:

About US Solar Fund plc

US Solar Fund plc listed on the premium segment of the London Stock Exchange in April 2019, following its successful US$200m IPO. The Company's investment objective is to provide investors with attractive and sustainable dividends with an element of capital growth by investing in a diversified portfolio of solar power assets in North America and other OECD countries in the Americas.

The Company acquires or constructs, owns and operates solar power assets that are expected to have an asset life of at least 30 years and generate stable and uncorrelated cashflows by selling electricity to creditworthy offtakers under long-term power purchase agreements (or PPAs).

About the Investment Manager

USF is managed by New Energy Solar Manager (NESM). NESM also manages New Energy Solar, an Australian Securities Exchange (ASX)-listed fund which has committed over US$1bn to US and Australian solar plants since late 2015.

NESM is owned by Walsh & Company, the funds management division of Evans Dixon, an ASX-listed company (ASX: ED1) with over A$20 billion of funds under advice and management.