US Solar Fund executes binding agreement for 39 MWdc solar portfolio in North Carolina

US Solar Fund plc has executed binding agreements to acquire 100% of the cash equity interests in an approximately 39MWdc portfolio of eight operating utility-scale solar power projects located in North Carolina.

The Company will acquire the Portfolio from Greenbacker Renewable Energy Company LLC (Greenbacker). Greenbacker is a leading investor and sponsor focusing on income-producing renewable energy projects across the United States.

The projects commenced operations between 2012 and 2015 and all are selling 100% of their electricity output under fixed-price long-term power purchase agreements (PPAs). The PPAs are with subsidiaries of Duke Energy with a weighted average term remaining of 10.2 years.

USF will fund the Portfolio acquisition with cash of approximately US$36 million and does not anticipate using debt at this time. USF may consider raising debt against the Portfolio at a later date.

The expected returns are in line with those anticipated in the Company's investment objective, as set out in its prospectus dated 26 February 2019. As it is operational, the Portfolio will generate revenue for USF immediately upon acquisition close, expected in early January once final diligence is complete.

USF continues to due diligence opportunities from its pipeline and expects to announce further investments in due course.