US Solar Fund reaches FC with US$200m IPO

The newly established closed-ended investment company, US Solar Fund Plc, has reached its first close of US$200 million initial public offerings (IPO) with a common share of US$1 per share.

From 31 March 2020 or when its assets are operational, USF is targeting a yield of at least 5.5% per annum (paid quarterly), prior to this, it is targeting an initial annual dividend yield of 2 to 3%. It is also targeting a total return in excess of 7.5% per annum (after fees and before tax) over the life of its assets.

USF’s shares will be listed on the main market of the London Stock Exchange. The investment manager, New Energy Solar, has an active pipeline of US$4.8bn of assets and it expects to have fully committed the proceeds of its IPO within six to nine months of admission; be fully operational within a further 12 months, and pay its first dividend in November 2019.

The Fund will invest in utility-scale solar farms and sells the electricity generated to creditworthy counterparties through long-term power purchase agreements (PPAs).