US Solar Fund PLC NAV UPDATE AND FACTSHEET (5410O)

TIDMUSF TIDMUSFP

RNS Number : 5410O

US Solar Fund PLC

10 February 2021

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10 February 2021

US SOLAR FUND PLC (USF, 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 December 2020 was $194.2 million or $0.970 per ordinary share, a 1.1% increase from the 30 September 2020 unaudited NAV of $192 million and $0.961 per ordinary share. All 41 operating assets were externally valued with the increase in NAV due to construction cost savings on the Milford project, strong operational performance, and discount rate reductions as the portfolio moved to a fully operational state. These positive impacts were more than sufficient to offset long-term electricity price forecast reductions.

Highlights for the quarter to 31 December:

-- USF completed its final construction project, the 128MW (DC) Milford plant ( Milford ) in Utah, on-time and under budget. The entire portfolio is now operating and generating revenue, with 100% of revenues contracted with investment grade offtakers.

-- USF's operating portfolio performed strongly in the quarter with the Utah and Oregon plants (60% of MW(DC) capacity) offsetting underperformance in California and North Carolina (40% of MW(DC) capacity). Total portfolio performance for the quarter was 19% above weather-adjusted expectations (driven by earlier than expected generation and strong performance from Milford). The strong final quarter resulted in full year 2020 performance of 4% above weather-adjusted expectations.

-- In accordance with Company policy, all 41 of the Company's operating assets were externally valued at 31 December 2020 (construction assets were held at cost in previous periods).

-- USF announced it has executed binding agreements to acquire up to a 50% interest in a 200MW(DC) operating solar plant located in the Imperial Valley of Southern California, Mount Signal 2 ( MS2 ). The transaction is structured in two tranches with the first tranche comprising of an immediate acquisition of an initial 25% interest, expected to be completed during the first quarter of 2021, bringing USF's portfolio to a total of 493MW(DC) of fully operating assets.

-- All assets in the portfolio have power purchase agreements ( PPAs ) with contracted prices for 100% of electricity generated. Including MS2, the portfolio weighted average PPA term is 15.4 years as at 31 December 2020, and all PPA counterparties are investment-grade (S&P rated A to BBB).

-- USF announced its sixth dividend (for the period ended 30 September 2020) of 0.50 cents per ordinary share, to be paid on 12 February 2021.

-- USF expects to cover the remaining 2020 dividend with operating cashflows and confirms its 2021 annual dividend target of 5.5 cents per ordinary share.

   --     COVID-19 continues to have no material impact on USF's operational assets. 

-- With 100% of USF's IPO proceeds now invested or committed to operational projects the Board is assessing debt and equity fundraising options for refinancing existing projects and financing future acquisitions from the Company's investment pipeline.

The update and the Company's factsheet for Q4 2020 are available on the Company's website at: www.ussolarfund.co.uk/investor-centre .

For further information, please contact:

 
US Solar Fund 
 Liam Thomas                      [phone] 
Cenkos Securities plc 
 James King 
 Tunga Chigovanyika 
 Will Talkington                  [phone] 
Jefferies International Limited 
 Stuart Klein 
 Gaudi le Roux 
 Neil Winward                     [phone] 
KL Communications                 [phone] 
Charles Gorman 
 Charlotte Stickings 
 

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. 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.

The Company 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 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$21 billion of funds under advice.

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February 10, 2021 02:00 ET (07:00 GMT)