Foresight Solar Fund, the London Stock Exchange-listed investor in UK ground-based solar photovoltaic (PV) plants, has announced that it will be pursuing a secondary listing on the JSE. The JSE listing is set for 3 April through a private placement with institutional South African investors.
The fund is managed and advised by Foresight Group, which launched its first fund in 2008 and now holds assets in Australia, the UK, Italy and the US. Since its income is derived from UK power plants, the Foresight Solar Fund will also offer a rand hedge.
In a statement, the fund said the South African listing “will enable qualifying South African investors to participate in the future income and capital performance of the fund”. It also creates a new platform for Foresight Solar Fund to raise equity funding to pursue future growth and investment opportunities.
The listing is expected to raise £50 million, with an additional £200 million raised during the course of the year. The placement of a maximum of 250 million shares will be a private placement to institutions, with the minimum investment being R1 million.
The Foresight Solar Fund is the second largest of its kind in the UK, with a gross asset value of approximately R9.8bn, a net asset value R5.7bn and a market capitalisation on the London Stock Exchange of R5.9bn. The proposed listing price will be released on 14 March, with share subscriptions closing on 29 March.
Money raised in the listing, as well as from the issuance of new shares in the UK, will be used to refinance existing revolving debt facilities. These were used for the acquisition of the Shotwick and Sandridge solar farms in the UK, which have a combined capacity of 122 MW. The fund owns a portfolio of 18 ground-based solar assets across Britain, with a gross asset value of more than £614 million and a total capacity of 470 MW.
Foresight Solar Fund will host a roadshow to selected South African investors ahead of the listing, with the aim of announcing the results of the private placing on March 29.
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