Foresight Slr Fnd Ld Foresight Solar Fund Limited : Acquisition

 
TIDMFSFL 
 
 
   28 September 2017 
 
 
 
   Acquisition 
 
 
 
   Foresight Solar Fund Limited ("The Company") is pleased to announce that 
it has entered into a binding contract to acquire its first asset 
outside of the UK with a commitment to acquire 48.5% of the share 
capital of Bannerton Solar Farm ("The Project") in Victoria, Australia 
(the "Transaction"). The Project will have a peak capacity of 110MWp 
once operational. KDB Infrastructure Asset Management Co. Ltd on behalf 
of Global Infrastructure Fund 3 and Hanwha Energy Corporation Singapore 
Pte. Ltd, a subsidiary of Hanwha Energy Corporation, are co-investors in 
the Project. 
 
 
 
   The Project will be acquired from a joint venture between Syncline 
Energy Pty Limited and Foresight Solar Australia (UK) Limited, for 
consideration of AUD 5.5 million which will consist of an initial 
payment and deferred payments during construction. Foresight Solar 
Australia (UK) Limited and Foresight Group CI Limited, the Company's 
investment manager (the "Investment Manager") are both subsidiaries of 
Foresight Group Holdings Limited. Once operational, the Project will 
increase the Company's portfolio to 20 assets with a peak installed 
capacity of 528MW. 
 
 
 
   The consideration may increase subject to the Project generating revenue 
early and construction cost savings.  The Project is expected to connect 
to the grid in July 2018. The Project benefits from a 10 year contract 
with the Victorian Government for the sale of a proportion of the 
Large-Scale Generation Certificates ("LGCs") produced and a 17 year 
fixed-price PPA with Alinta Energy, an Australian retailer, for a 
proportion of the electricity generated.  The remaining electricity 
generated and LGCs will be sold at the prevailing market price. 
 
 
 
   The acquisition of the portfolio will be funded through the existing 
revolving credit facility provided by Santander Global Corporate 
Banking. The acquisition is subject to certain conditions being met. In 
addition, the Project will benefit from an Australian Dollar denominated 
debt facility provided by the Clean Energy Finance Corporation during 
the construction and operational phase. 
 
 
 
   Foresight Solar Australia (UK) Limited is deemed to be a related party 
of the Company under LR 15.5.4R as it is a member of the Investment 
Manager's group. The Transaction is classed as a smaller related party 
transaction under Listing Rule 11.1.10R. Stifel Nicolaus Europe Limited 
as Sponsor in accordance with Listing Rule 11.1.10R (2)(b), has 
confirmed that the terms of the Transaction are fair and reasonable as 
far as the shareholders of the Company are concerned.  The terms of the 
Transaction were also agreed to by the unrelated parties named above who 
participated in the sale and in the purchase of the Project. 
 
 
 
   Commenting on the acquisition, Alex Ohlsson, Chairman of the Company, 
said: "This first overseas acquisition represents the development of the 
Company's international growth strategy, which sees the Company's 
portfolio now reach a total of 528MW of capacity installed or under 
construction. This demonstrates the Company's ability to grow the fund 
in attractive new geographies with expected attractive risk-adjusted 
returns, while leveraging the Investment Manager's experience and track 
record in both the UK and Australia. This acquisition follows the 
Investment Manager's move to establish an office in Sydney in early 2016 
prior to bringing its first Australian asset under management, 
Barcaldine Solar Farm, in early 2017." 
 
 
 
   For further information, please contact: 
 
   Foresight Group 
 
   Romy Abrahams,             [e-mail],           +44 
(0)20 3763 6956 
 
 
 
   Stifel Nicolaus Europe Limited, [phone] 
 
   Mark Bloomfield 
 
   Neil Winward 
 
   Tunga Chigovanyika 
 
 
 
   J.P. Morgan Cazenove, [phone] 
 
   William Simmonds 
 
   This announcement is distributed by Nasdaq Corporate Solutions on behalf 
of Nasdaq Corporate Solutions clients. 
 
   The issuer of this announcement warrants that they are solely 
responsible for the content, accuracy and originality of the information 
contained therein. 
 
   Source: Foresight Solar Fund Limited via Globenewswire 
 
 
 
 

(END) Dow Jones Newswires

September 28, 2017 06:10 ET (10:10 GMT)

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