Foresight Solar Fund proposes tap Issuance

The Board of Foresight Solar Fund Limited has announce a proposed tap issuance of up to 30,995,537 ordinary shares in the capital of the company (the "New Shares"), representing approximately 9.99%. of the company's issued share capital at an issuance price of 103.00 pence per new share.

Foresight Group CI Limited, the investment manager, believes the UK solar market remains attractive, particularly given the recent recovery and positive momentum in UK wholesale power prices. Foresight Group has identified an attractive pipeline of over 200 MW to support the growth of the company over the next twelve months. From this pipeline, the company has entered into exclusivity/binding agreements to purchase operational, fully accredited UK solar assets totaling 82 MW which it expects to acquire before the year end.

The net proceeds of the proposed tap issuance will enable Foresight Solar Fund to take advantage of these and other investment opportunities as and when they become available.

The tap issuance is being conducted, subject to the satisfaction of certain conditions, through a bookbuild process which will be launched immediately following this announcement. Stifel Nicolaus Europe Limited and J.P. Morgan Securities plc, which carries on its UK investment banking activities as J.P. Morgan Cazenove, are acting as joint bookrunners in connection with the tap issuance. Members of the public are not entitled to participate in the tap issuance.

The tap issuance is being effected pursuant to the authority granted at the company's General Meeting on 18 October 2016, permitting the allotment of up to 30,995,537 ordinary shares in the capital of the company on a non pre-emptive basis. The tap issuance price of 103.00 pence per new share is equal to the NAV per Ordinary Share of 100.7 pence as at 30 September 2016 plus an estimate of accrued income attributable to the company since this date, plus a premium to cover issuance costs.

The new shares will, when issued, be fully paid and will rank pari passu in all respects with the existing ordinary shares, including in respect of the right to receive all future dividends and distributions declared, made or paid by reference to a record date falling after their issue, including without limitation an entitlement to the third quarterly dividend of 1.54 pence in respect of the period from 1 July to 30 September 2016, which was approved by the Directors on 18 October 2016 and will be paid on 31 December 2016.

Alex Ohlsson, Chairman of the Company, said:

"The recent upward movements in wholesale power prices have been positive for the sector, and the Company has identified an attractive pipeline of assets that will support the growth of the Company over the next 12 months.  Having secured exclusivity over an 82 MW operational portfolio, additional funds raised can be deployed quickly into income generating assets thereby avoiding the impact of cash drag on investors."