Foresight Solar Fund will issue new shares in an effort to raise further capital, having allocated all of its existing credit facilities (GBP 95 million) in the acquisition of solar projects in the UK, and the funds first moves in to the Australian market.
Foresiight acquired a 48% stake in the 110 MW Bannerton solar farm in September. The following month, took a stake in a 117 MW portfolio being developed by Canadian Solar, namely the Longreach Solar Farm, Oakey 1 Solar Farm, and Oakey 2 Solar Farm.
The new shares will be issued under Foresight’s existing placing program, at an initial price of GBP 1.08 per share. This price is 2.9% below the closing market price per share on October 24, and investors will be eligible for the fund’s second quarterly dividend, expected on November 24 2017. Foresight Solar Fund’s target dividend for the years stands at 6.32 pence (US$0.083) per ordinary share.
Newly raised funds will be used “to pay down debt and to allow the company to take advantage of a number of further attractive investment opportunities in the UK and overseas markets,” according to a press release from Foresight.
In particular, Foresight is looking to be focused on the Australian market for future acquisitions. According to a statement from the group: “The board believes that the Australian solar market is attractive, as it offers the opportunity to diversify the Company’s portfolio into an overseas market that benefits from strong regulatory support.”
The new share placement will be open to ‘qualified investors’, with share allocations given at the discretion of the company. Foresight Solar Fund will apply to the UK listing authority and expects the shares to be admitted for trading on the London Stock Exchange no later than November 10th.
Foresight Solar Fund also announced that it is abandoning a previously announced plan to seek a secondary listing on the Johannesburg Stock Exchange.