Bluefield Solar Completes Phase One of Strategic Partnership with GLIL, Acquires UK Solar Portfolio

Bluefield Solar, the UK-based income fund focused on acquiring and managing solar energy assets, has announced the completion of phase one of its strategic partnership with GLIL. This partnership entails the acquisition of a 247MW portfolio of UK solar assets from Lightsource bp, known as the Lightsource bp Portfolio. GLIL, comprising UK pension funds with a £3 billion infrastructure asset portfolio, including Local Pensions Partnership Investments, Greater Manchester Pension Fund, Merseyside Pension Fund, West Yorkshire Pension Fund, and Nest, has collaborated with Bluefield Solar on this venture.

The Lightsource bp Portfolio consists of 58 operating sites, predominantly located in southern and central England. It comprises 184MW backed by Feed in Tariff (FiT) subsidies, 15MW by Renewable Obligation Certificates (ROCs), and two subsidy-free projects totaling 48MW. Over the period from 2023 to 2035, approximately 80% of the portfolio’s revenues are projected to be fixed and regulated. Bluefield Solar has invested £20 million, representing 9% of the equity, with GLIL contributing the remainder for the acquisition.

Funding for the acquisition comes from earnings generated in the financial year ending 30 June 2023, after accounting for dividends, debt amortization, and the Electricity Generator Levy (EGL). Additionally, Bluefield Solar has used £10 million of earnings to partially repay its revolving credit facility (RCF). With this acquisition, the Company’s RCF balance stands at £167 million, while long-term amortizing debt amounts to £430 million. The total outstanding debt, including subsidiaries, is £597 million, with a leverage level of around 41% of Gross Asset Value.

Phase two of the Strategic Partnership involves GLIL provisionally acquiring a 50% stake in a portfolio of over 100MW of operational UK solar assets owned by Bluefield Solar (the Bluefield Portfolio). This phase is expected to reach financial close in the first half of 2024, providing Bluefield Solar with additional liquidity to pay down its drawn RCF. Phase three of the partnership will see Bluefield Solar and GLIL committing capital to select development assets from Bluefield’s pipeline, subject to market conditions, with the aim of grid connection within the next two to three years.