Us Solar Fund Regulatory News (USFP)

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18 May 2021

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

NAV UPDATE AND FACTSHEET

US Solar Fund plc (LON: USF (USD)/USFP (GBP)) is pleased to announce that its unaudited NAV at 31 March 2021 was $194.4 million or $0.971 per ordinary share (31 December 2020 NAV of $194.2 million or $0.970 per ordinary share).

After quarter-end, USF announced the results of its equity issue raising gross proceeds of $132 million, exceeding its $105 million target, with strong support from both existing and new investors. The proceeds will be used for balance sheet management and growth opportunities as outlined in previous announcements.

Highlights for the quarter to 31 March 2021:

• USF announced completion of the $23 million acquisition of a 25% interest in a 200 MWDC operating solar plant located in the Imperial Valley of Southern California, Mount Signal 2 (MS2), increasing USF's total portfolio to 493 MWDC of fully operational assets. USF has the option to acquire a further 25% interest in MS2 in the following 12 months.

• USF's portfolio performed to within 0.5% of the performance expected, taking into account actual weather conditions, (weather-adjusted expectations) but 1.8% below budget expectations. USF's largest project, the 128 MWDC Milford project in Utah continues to perform well above expectations, while further heavy snowfall in Oregon, and the progressive rectification of inverter issues during the quarter in North Carolina resulted in the slight underperformance.

• Consistent with the Company's policy, USF's assets were internally valued this quarter. No changes were made to the electricity price forecasts or discount rates used by the external valuer in the 31 December 2020 valuation. Positive working capital movements offset dividends paid and normal operating expenses. For the quarter to 30 June 2021, all 42 assets (including MS2) will be externally valued using updated electricity price forecasts and discount rates.

• The Company announced its fourth dividend for the year ended 31 December 2020, of 0.50 cents per ordinary share which was paid on 12 April 2021. This brings the total dividend for FY20 to 2.0 cents per ordinary share. USF confirms its 2021 annual dividend target of 5.5 cents per ordinary share which will continue to be paid quarterly and which is expected to be covered with operating cash flows.

• Dividend cover was 2.38x for the dividend totaling 1.0 cent per ordinary share for the six months ended 31 March 2021. This reflects the first six-month period in which all projects acquired with the IPO proceeds were, or became, operational.

• All assets in the portfolio have power purchase agreements (PPAs) with contracted prices for 100% of electricity generated. The portfolio weighted average PPA term is 15.1 years as at 31 March 2021, and all PPA counterparties are investment-grade (S&P rated A to BBB).

• As of 31 March 2021, the Investment Manager's pipeline included 2,975MWDC of high-quality assets, with an aggregate value of approximately $2.9 billion in cash equity value and a weighted-average PPA term of 15 years.

• COVID-19 continues to have no material impact on USF's operating activities.

The NAV update and the Company's factsheet for Q1 2021 are available on the Company's website at: www.ussolarfund.co.uk/investor-centre.

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, and raised a further $132m in May 2021 taking cumulative proceeds to $332 million. 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. 

US Solar Fund 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). 

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

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 (ASX:NEW) which has committed over US$900m to US and Australian solar plants since late 2015. 

NESM is owned by E&P Funds, the funds management division of E&P Financial Group, an ASX-listed company (ASX: EP1) with over A$20 billion of funds under advice.