NextEnergy Solar Fund (NESF) has announced the results of its placing. It says that the level of confirmed demand was significantly in excess of the original targeted fundraising of £100m and that due to the substantial oversubscription, the Board, after consulting the Investment Manager, has elected to exercise its right to increase the size of the Placing from the initial target of £100m to £126.5m (before expenses).
Increased placing size reflects demand and near term pipeline
The Board says that, in determining the increased size of the placing, it has taken into account the strength of the Company’s near term investment pipeline, current available cash resources and the Company’s stated dividend target.
Significant scale back
Notwithstanding the decision to increase the size of the Placing, NESF says that it has had to conduct an extensive scaling-back exercise. It says that a total of 115,000,000 New Shares will be issued pursuant to the Placing at 110p per share. It is intended that the net proceeds of the Placing will be used to fund new investments in accordance with the Company’s investment policy. Admission to trading is expected to become effective on 23 June 2017 and, on Admission, NESF says that its issued share capital will comprise 571,388,199 Ordinary Shares, none of which will be held in treasury.
NESF board delighted with response
Kevin Lyon, Chairman of NESF, says that “The Board is delighted to have had such a positive response to the Company’s fundraising from both existing shareholders and new investors. This fundraising will enable the Company to continue to build on its strong position and pursue attractive investment opportunities. The significant oversubscription of NESF’s latest fundraising demonstrates investors’ confidence in NESF’s investment proposition and its Investment Manager. ”
About NextEnergy Solar
NextEnergy Solar Fund seeks to provide investors with a sustainable and attractive dividend that increases in line with RPI over the long term and an element of capital growth through the re-investment of net cash generated in excess of the target dividend. NextEnergy Solar Fund’s portfolio is focused on operational solar photovoltaic (“PV”) assets located in the UK.
NextEnergy Solar’s oversubscribed placing raises £126.5m : NESF