REG - Foresight Solar Fund - Foresight Solar - Project Lorca Debt Refinancing

Foresight Solar FundAnnouncement

29/03/2022 07:00

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RNS Number : 3080G  Foresight Solar Fund Limited  29 March 2022

 

29 March 2022

 

Foresight Solar Fund Limited

("Foresight Solar" or "the Company")

Project Lorca debt refinancing

 

Foresight Solar, a fund investing in a diversified portfolio of ground-based
solar PV and battery storage assets in the UK and internationally, is pleased
to announce that it has reached completion on a €28.0 million senior debt
facility for the 98.5MW Lorca portfolio ("Project Lorca") in Granada, Spain,
secured on attractive terms.

The senior debt facility will be provided by BayernLB (the "Lender") and
enables Foresight Solar to obtain a long debt structuring tenor. The interest
rate is fixed at a competitive rate to the market. The debt facility enables
Project Lorca to optimise its capital structure and deliver higher cash yields
whilst complying with financial covenants and debt service coverage ratios.

Following this transaction, the Company's total outstanding debt is £538.0
million, representing approximately 45.9% of Gross Asset Value ("GAV") of the
Company and its subsidiaries based on the Company's 31 December 2021 GAV of
£1,172.0 million. This is within the 50% limit on total gearing of the
Company's GAV outlined in the prospectus.

The refinancing is the latest step in the development of Project Lorca which
is currently under construction and is on track to be grid connected and
exporting electricity by June 2022. In late 2021, the Project entered into a
ten-year fixed price Power Purchase Agreement ("PPA") with Norway-based
Statkraft, Europe's largest producer of renewable energy. The PPA provides the
portfolio with a long-term hedge for approximately 70% of its annual
production and increases the Company's revenue visibility.

 

For further information, please contact:

 Foresight Group
 Nish Sivarajan                                                                 +44 (0)20 3911 2318
 (InstitutionalIR@ForesightGroup.eu (mailto:InstitutionalIR@ForesightGroup.eu)
 )

 Jefferies International Limited                                                +44(0)20 7029 8000
 Neil Winward
 Gaudi Le Roux

 Citigate Dewe Rogerson                                                         +44(0)20 7638 9571
 Toby Moore
 Lucy Eyles
 Lucy Gibbs

 

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