|And NESF has just done so - and the wait was (relatively) costly...
|BSIF also borrowed long and low:
|FSFL is probably the most interesting of these because they have borrowed at extremely low rates - see http://uk.advfn.com/stock-market/london/foresight-solar-FSFL/share-news/Foresight-Slr-Fnd-Ld-Foresight-Solar-Fund-Limited/70960348
Means that less goes on paying interest and hopefully more on dividends.|
|No idea, but might explain why I'm in the former and not either of the latter ;)
Premium on BSIF about 3.5%; NESF 6.2%, FSFL 4.2%. Hard to call much from sizes (all similar) or gearing - NESF barely geared at all [actually 33% according to Factsheet], BSIF & FSFL both 40-45% geared.
They're subtly different in assets & lifespan I guess - BSIF is more like an annuity stream, sweating the assets for 20yrs+ & with either residual value at the end, or restructuring/buying more along the way.
I don't follow NESF or FSFL closely enough to know how "permanent" they are, but that could well account for the difference in yield. NESF very much focussed on southern England. Must admit I looked at all 3 previously but would have to read up on all again.
All figs from HL.|
|Any explanation why the yield here of 6.9% is higher than 5/7% on the other solar funds, NESF and FSFL?|
|Interims on 23rd. I wonder what their reaction will be to a little relaxation in the Govt's position on FIT?|
|A good place for some high income exposure - directors have been buying in volume recently.|
|big buys today......I hold also|
|I made this my largest holding at 1.02...something I never thought I would do but with regards to my portfolio it helps me sleep at night!|
|Results read well, & the low-ish NAV reading doesn't include the post-year end activities:
"Whilst the all-in cost of the long term financing achieved of 2.875% on the fixed tranche and 0.7% plus RPI on the indexed tranche is very favourable compared to the 450bps assumed in the year end valuation methodology, and the July 2016 power forecast suggests an increase in prices in the long term, both were confirmed after the year end. Your Board, therefore, considers it inappropriate to reflect these recent events in the June, 2016 balance sheet."
Still at a premium to NAV but considerably lower than infrastructure trusts.|
|Bought more based on that debt renegotiation - amortising over 18 years and I still don't believe there'll be nothing left over by then - it'll be like Trident, frequent extensions to asset life!|
|"Bluefield Solar Income Fund Limited Long Term Financing Terms & Trading Update" - can't really see anything in it on the "Trading Update" side? But good news on debt, nearly 3x covered & well below previous 450bps.|
|Having slept on it:
1. Gearing. Isn't an issue in and of itself, but is insofar as paying the loan interest effectively has the first call on the income. So if anything went wrong (subsidies being just one example) the loan gets serviced ahead of returns to shareholders.
2. Wasting asset - not convinced this has to be the case, but taking what they say at face value - something like BRCI (8.2% divi, 3% discount, mainly commod/oil shares) seems a better bet. No express RPI linkage but if the portfolio isn't worth double in 20 years (as opposed to zero) I'd be surprised (they achieve their very high yield in part through writing options). Are other examples of 8% yielders that won't disappear, eg AEWU, though each with pros & cons. Still, the point remains - can get higher than BSIF's yield without having to own a wasting asset.
3. Dilution through more share issuance.
Any bear points I've missed?|
|Must admit I haven't read all of the 61 pages of the annual report - maybe about 4 of them. Like the yield, like the relatively low charges. Uncertain about post-EU changes to subsidy, uncertain about any fallback position should anything go wrong (eg full-field outages - are they insured?), as well as the gearing. Also not convinced 7% pa for 20 years, then potentially nothing, is much of an investment.
On the other hand - they seem very proactive, they've delivered on the dividend so far, and unlike some of the other renewable ITs, aren't on a silly premium.
No holding as yet but got on the watchlist|
|It is rather interesting to look at this presentation by FSFL (also solar).
In particular Slide 9 is VERY interesting taking a longer term view|
|Noted that Foresight (FSFL) recently closed on a long term debt facility, as BSIF are currently looking to do, at a rate of 2.6%. Well below BSIF's modelled assumption of 4.5%, as set out (pg24) in the excellent interim report linked below.
|The Euro fund never happened. But this one trades around par and has payed out as promised, so far.
Updated nav etc, reflecting yet another fall in power price curve.
But div remains on target.
|They are looking to float a Euro fund (€ denominated):
Italy and Spain to start with. Not in Greece, they say!|
|Yeah, TRIG's RNS was clearer, but the fall's probably about right here, if not a little generous. Hopefully its not significant enough to affect their targetted dividend payments, but again unlike TRIG, they don't actually confirm that.|
|Not quite so definite, is it (compared with TRIG)?
2p - 3p drop looks about right.|
|RNS Number : 6137S
Bluefield Solar Income Fund Limited
09 July 2015
9 July 2015
BLUEFIELD SOLAR INCOME FUND LIMITED
Changes to the Climate Change Levy
Bluefield Solar Income Fund Limited (the "Company") notes yesterday's announcement by the Chancellor of the Exchequer in the Summer Budget 2015 (the "Budget") regarding the removal of the exemption for renewably sourced electricity from the Climate Change Levy from which many renewables projects in the UK benefit by way of the sale of Levy Exemption Certificates (LECs). This will be effective from 1 August 2015. The Budget also proposed future reductions in UK corporation tax.
Bluefield Partners LLP, the Company's Investment Adviser, has reviewed the Company's portfolio and can confirm that LECs make up 3-4% of total revenues in the Company's portfolio. The impact of the loss of LEC revenue will be partially offset by the expected reduction in corporation tax. The majority of the Company's revenues are derived from the regulated revenue from the Renewable Obligation Scheme, which remains unchanged, and by selling the generated electricity under power purchase agreements.
An independent valuation is currently being undertaken for the Company's portfolio for the year ending 30 June, 2015, which is expected to be announced in conjunction with the Company's annual accounts.|
|Its not really a concern but I am supprised how much this is under the radar, especially when you consider the green side of things in the current climate.|
|I stumbled across this stock whilst doing my annual toplists dividend yield searches.
I like what I see. I fully concur with jonwig about continued re-investment in the portfolio to prolong the life expectancy of the stock.
That said a 7p divi in its second year of trading is quite remarkable. This being hedged against the RPI and should increase year on year.
So a possible minimum return on a 20 year life expectancy of current assets could yield, 140pence return before index linking, with everything else thrown in for free.|
|Comment from i i i , looks fair, though I'd need to check on the wind-down comments, and if they are going to continue raising capital, I'd want a slice:
Bluefield Solar Income has forecast a dividend of 7p for the year to end June 2015, indicating a yield of 6.8% paid semi-annually at the current share price.
Two thirds of its revenue derives from government-backed renewable energy obligation certificates and feed-in tariffs, both of which are linked to the Retail Prices Index (RPI).
The rest derives from electricity prices, which the managers expect to rise broadly in line with inflation. On this basis, the dividend is predicted to rise in line with RPI, making it very attractive.
Launched in July 2013, the Guernsey-based fund has a portfolio of 12 large-scale solar energy projects on greenfield sites across southern England and Wales. All but one are operational.
It only invests in projects that have the requisite planning permission and grid connections in place, but will also commit at the pre-operational stage. This allows it to achieve better terms, oversee the quality of installation, and secure greater contractor liability for any problems.
Bluefield Solar is managed by Bluefield Partners, which has a good track record in the solar sector. To minimise risks, Bluefield works with a variety of contractors using equipment from a range of manufacturers, and has started to diversify into ground-based industrial and commercial solar energy by buying a portfolio of established plants.
Its projects all have 20- to 25-year contracts, and the outlook for solar is arguably better than for wind generation as it is less environmentally contentious and the output from irradiation is less variable.
Growth in Bluefield Solar's net asset value (NAV) per share is likely to be limited and plans to nearly double the company's issued capital over the next year or so - in order to fund further diversification - seem likely to limit any increase in the modest premium.
More importantly, dividends from the current portfolio will tail off in around 20 years, and the projects may have negligible residual value. So unless the managers keep adding to the portfolio on attractive terms, investors are effectively buying a 20-year index-linked annuity.
However, the NAV per share, like the yield, should be unaffected by short-term gyrations in the stock market, making the shares a high-yielding refuge from a potential bear market.
(Close up the space)|
|Doubt I'll be eligible either, jonwig, but like you, pretty pleased with progress being made here, in terms of their investments, the growing NAV and dividends.
A reasonable gesture too, to have brought forward the next dividend by way of compensation for those shareholders not eligible to participate in the placement (and hot on the heels of the 2p payment just made on Friday).|