NESF Invests In 400MW Solar Portfolio
NextEnergy Solar Fund (NESF) has made a commitment of $50m to solar infrastructure fund NextPower 3 and a new revolving credit facility of £100m.
NextPower 3 owns a 394MW solar portfolio of which 245MW is operational, with a further 453MW in acquisition under exclusivity.
NESF's investment in NextPower 3 will represent 3.5% of NESF's gross asset value (GAV) as of 31 March 2021 and will be funded by the company's new revolving credit facility.
NextPower 3 is a private solar infrastructure fund established to invest in solar infrastructure projects primarily in OECD countries.
Since its establishment in November 2018, it has built an “attractive portfolio” of operational, in-construction and pre-construction solar assets.
The fund is diversified by geographic location, regulatory regime, technology provider and electricity offtake counterparty.
NextPower 3 will benefit from NextEnergy Capital's ability to source and secure solar assets that deliver “attractive risk-adjusted target returns”.
An investment into the fund will also provide NESF with additional, off-market opportunities to co-invest with NextPower 3.
This will involve NESF taking direct equity stakes in selected investment targets sourced by the fund at attractive terms (on a no-fee, no-carry basis).
NextPower 3 is managed by NextEnergy Capital and the asset manager is WiseEnergy, NESF's asset manager.
The portfolio holds assets and projects in countries that include the US, India, Portugal, and Chile, with a total pipeline of 1.6GW.