Yes agree, they sound determined to do something. Doubt anyone will be rushing out to build new renewable now, better to buy off funds offloading/winding up |
Thought tone in last week's interims was noteworthy - almost ready to throw the towel in if an acceptable alternative could be found/was offered. And as the manager says, the fund is effectively in run off mode, albeit a long one, at least for the time being. In any case, the 10% index linked yield on offer, along with a solid manager tempted me to buy a few last week. It's easy to look at the downside on these renewable infra cos, but there are upside scenarios as well... |
 Bluefield Solar eyes buybacks.
Green infrastructure trust Bluefield Solar is considering buying back their heavily discounted shares as they find ways to unlock cash.
24 Feb 2025: Michelle McGagh, Citywire.
Bluefield Solar Income (BSIF) could be in the market for more share buybacks after refinancing £300m of debt. The £509m Bluefield investment company has refinanced the 359-megawatt portfolio of solar assets it jointly owns with GLIL Infrastructure, with Bluefield owning just over a 25% stake. The refinancing replaces £214m of existing inflation-linked debt with £297m of fixed rate debt at a rate of 5.8% until 2035 to match the subsidy period of the assets. That results in Bluefield Solar’s total debt costs increasing from 3.4% to about 3.8%.
Although the fund’s borrowing costs have increased, Stifel analyst Iain Scouller said that the new agreement provides ‘more certainty on debt costs at a time when inflation has been volatile in recent years’ and also confirms a £21m cash inflow to the fund. The £21m of cash together with the successful sale of 112MW of solar capacity as part of the partnership with GLIL means a total of £89m of capital has been returned to Bluefield since it partnered with GLIL in September 2024. To date, £50.5m from the sale of 112MW of assets was used to repay part of the fund’s revolving credit facility (RCF), with another £10.6m going towards share buybacks and another £6.2m invested in the solar asset development pipeline.
Scouller said that the fund is now sitting on about £40m of cash which can be used to pay down the RCF, support further developments, or extend its share buyback programme following ‘the completion of the company’s original £20m allocation in January 2025’. Bluefield shares have been hit by downbeat sentiment towards renewables in recent years, falling power prices and a cut in its dividend growth target. The shares currently trade at a discount of 28.6%. Including dividends, the net asset value (NAV) slipped 0.6% over the past year while the shares dropped 7.6%. The investment company also noted that phase three of its GLIL partnership, which involves ‘the prospective sale by Bluefield of a limited portion of its ready-to-build pipeline, is currently in progress’.
John Scott, Chair, said: "We have worked closely with GLIL and our lenders to complete this refinancing at an attractive price, enabling further capital to be returned to the company to support future RCF repayments and allowing the continued funding of the company’s attractive development pipeline."
NB: Current shareprice discount to NAV is circa 30% ! |
Amazing how this news leaks |
"Solar power may be relatively attractive, but it needs to be accompanied by energy storage. In recognition of this, Bluefield Solar is developing battery storage projects as well as new solar ones."
All I need is for him to mention hydrogen as a storage medium and I'll be happy! |
Looks like BSIF are tipped as a BUY in The Telegraph's Questor column this morning, though I don't have access to it. Perhaps that helps explain yesterday's fillip? |
Tipped in today's DT |
Sometimes things are just "obvious". Well done holders. FSFL today suggests hopefully more to come on BSIF. |
FWIW :- RBC cuts Bluefield Solar Income target to 115 (120) pence - 'sector perform' |
I thought I'd bought well in January - currently down 5%, but with a dividend in the mix. |
It would be nice to have got the timing right-but won't count my chickens for a bit yet though chucko1! |
The move away from 82p after those multiple million trades might reward our timing! |
Joined you all |
What's the timescale for a target like this? This type of forecasting tends to be wishful thinking IMO. |
A cut, perhaps, but still an attractive target price...
*RBC CUTS BLUEFIELD SOLAR INCOME FUND TARGET TO 115 (120) PENCE - 'SECTOR PERF.' |
Bought a few today |
Piling in also! I see the major seller effect as the principal cause for recent significant "irrational" underperformance. NESF has recovered all its recent beating and GCP also up in large strides.
Now, I know one can intellectualise the difference between various bracketed shares, but it's easier to overanalyse their importance! Needs of sellers dominates all, at least in the short to medium term - and medium can exceed some traders' patience (or capital preservation). |
Seller still there, suspect a few more of those 1m's to be filled & reported. But cheap is cheap. |
Oh, OK then. I'll have a few I suppose to keep you company. Just a few mind :-) |
Also been buying here this morning for the same reason.
1 million trade just printed at 82p, so hopefully good timing. |
The XD was only a few days ago but otherwise agree - added a few more today, having seen what FSFL & NESF have done. Of the 3 main solar ITs, BSIF seems the clear laggard. |
Could be worth a trade here - not participated in last week's mini rally across the sector and discount looks out of line with its typical range (even more so than its peers, which is saying something). |
The same paper today shows the gas/oil industry attempting to maintain its grip:
Ed Miliband risks destroying the UK’s reputation if he blocks Britain’s two biggest offshore oil and gas developments, the boss of energy giant Equinor has warned. Anders Opedal, chief executive, said the Energy Secretary had to issue new permits for the Rosebank and Jackdaw oil and gas fields to ensure the UK is a “predictable country for investors”. - Telegraph |
Renewable costs have fallen faster than ultra-optimists dared to think possible. They already undercut coal and gas plants on pure price and a 24/7 basis in areas holding 80% of mankind, even in the fracking fiefdom of Texas. “We’re seeing a stampede into solar plus batteries. Together they are the killer app of the clean energy age,” said Lord Turner, head of Energy Transitions Commission, which includes China, India and the global South, as well as the West. More than $2 trillion a year now goes into renewable capex, and just $1 trillion into the last hurrah of the hydrocarbon industry. That has little to do with climate policy. The money is chasing profit. Trump cannot save his beautiful fossilised world, however hard he tries. It is too late, even in America. The “green scam” has already beaten him.
Ambrose Evans-Pritchard, Daily Telegraph, 31 January 2025 |
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