Bluefield Solar Income Fund Limited announced two days ago that it has entered into binding contracts to acquire its eighth large-scale solar plant.
In total, the company has invested into UK based solar plants with a combined capacity of 92 MegaWatts Peak (MWp). The company has now committed 85% of the IPO proceeds in the six months since the company was listed on the London Stock Exchange. The company raised £130 million in July 2013.
Solarcentury will build the Kent based plant and will then warrant its performance for an initial period. It will undertake the ongoing operation and maintenance of the plant under a separate agreement.
Bluefield Solar Income Fund confirmed that, based on the existing committed projects and the terms agreed on this portfolio, it remains on course to deliver against its target dividend of 4 pence per ordinary share in relation to the first financial year ending 30 June 2014, and 7 pence per ordinary share in respect of the company's second financial year, with the intention of this rising annually with RPI thereafter.
Bluefield Partners LLP, the company's investment adviser, said it will seek to outperform that return by active management strategies across the invested portfolio. The company is insulated from development risk by the contractors taking full responsibility for the construction and delivery of the plants.