For the year ended 30 June 2016 Bluefield Solar Income Fund reports that its NAV fell to 99.39p from 103.58p. It paid dividends totalling 7.25p, ahead of expectations. The share price at the end of June was 99.75p, a small premium to NAV, but since the end of the year, the shares have rebounded and currently trade at 107.25p.
The fall in the NAV is largely through the adoption of progressively lower power price assumptions from the Company’s independent forecaster. Earnings were 7.1p per share, dampened by lower irradiation than forecast. The valuation is based on an equity discount rate of 7.5%.
A successful placement of new shares in December 2015 raised gross proceeds of GBP32 million and the Company’s market capitalisation grew to GBP309 million at 30 June 2016. During the year ended 30 June 2016, the Company announced 17 acquisitions, consisting of 44 additional plants, financed by total commitments of GBP193.3 million with an estimated combined energy capacity of 148.6 MWp. As at 30 June 2016, the Company had a total of 73 solar assets with an estimated combined energy capacity in excess of 400 MWp, all of which were operational.
The landmark deal was the acquisition in January of the Primrose assets, a 95MWp operating portfolio, which was funded by the short term credit facility. In addition to this the Company also funded the construction of a series of Solarcentury plants, continuing our strategy since IPO of funding construction projects. The Company also acquired, in two related party transactions, additional solar farms on the sites of Thames Water processing plants and a 4.1MWp Feed-in Tariff asset on the Toyota site in Derbyshire, increasing the level of RPI-linked revenues in the Company.
During the year they announced the agreement of an amended and restated credit facility, which increased the funds available from GBP50 million under the original Revolving Credit Facility (“RCF”) up to a total of GBP200 million. The credit facility was provided by RBS and Investec and has been fully refinanced with long term debt post year end; and in September, 2016, the Company announced a long-term financing agreement with Aviva Investors. The GBP187 million facility is fully amortising over 18 years and has two tranches: GBP121.5 million is fixed at a cost of 2.875% and GBP65.5 million has a cost 0.70% + RPI. The Aviva financing replaced the pre-existing RCF. The Company also agreed a further amended and restated GBP30 million RCF with RBS. The Board is working with the Investment Adviser to consider the optimum structure for both short term and longer term debt. They intend to remain conservative in both the level of gearing and the debt service cover ratio.
BSIF : Bluefield Solar rebounds from year end lows