Us Solar Fund Regulatory News (USFP)

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23 May 2022

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

QUARTERLY TRADING AND NAV UPDATE

US Solar Fund plc (LON: USF (USD)/USFP (GBP)) announces that its unaudited NAV at 31 March 2022 was $321.1 million or $0.967 per ordinary share, a 0.9% decrease from the 31 December 2021 NAV of $324.0 million or $0.975 per ordinary share.

Highlights for the quarter to 31 March 2022:

• The marginal decrease in NAV over the quarter was due to a reduction in cash balances arising from seasonally lower production and associated cash flows over the winter months. There was no change in the value of individual assets or any adjustment from electricity price forecasts, which will be updated at the end of the second quarter.

• Despite seasonality in production levels, production for Q1 2022 was 2.6% above budget for the quarter, primarily due to better than forecasted weather in California and Oregon.

• The Company announced its Q4 2021 dividend of 1.50 cents per ordinary share, paid on 29 April 2022, in line with the Company's target full year dividend of 5.5 cents per ordinary share.

• Dividend cash cover for the 12-months ended 31 March 2022 was 1.26x. Dividend cover in Q3 and Q4 is expected to trend higher due to seasonality and cashflows received from operations during warmer months. 

• 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 14.1 years as of 31 March 2022, and all PPA counterparties are investment-grade (S&P rated A to BBB).

Highlights post period end:

• This month, USF received the remaining regulatory consent to close the acquisition of its second 25% interest in the 200MWDC Mount Signal 2 project (MS2). USF has an existing 25% interest in MS2 and exercised its option over the second 25% interest in February 2022. Close is expected in coming weeks and will bring USF's total operating portfolio to 543MWDC.

The NAV update and the Company's factsheet for Q1 2022 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, established in 2019, is listed on the premium segment of the London Stock Exchange in April 2019 with a market capitalisation of approximately $340m. The Company's investment objective is to provide investors with attractive and sustainable dividends with an element of capital growth by owning and operating solar power assets in North America and other OECD countries in the America.

The solar power assets that the Company acquires or constructs 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). The Company's portfolio consists of 42 operational solar projects with a total capacity of 543 MWDC, all located in the United States.

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. Combined, US Solar Fund and New Energy Solar have committed approximately US$1.3 billion to 57 projects totalling 1.2GWDC.

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.