The £70m RCF extension is now available until June 2025 and benefits from improved terms with a margin of 150bps over SONIA (“Sterling Overnight Index Average”) compared with 160bps over SONIA under the earlier terms.  As at 7 May 2024, the Company’s total interest cost for any amount drawn under this RCF was 6.7% due to SONIA being at 5.2%.

This follows the recent announcement of the extension of the Company’s other RCF facility of £135m to June 2026 with two additional 12-month extension options available at the Company’s sole discretion.

NextEnergy Solar Fund’s two recent RCF extensions demonstrate the appetite of its banking partners to provide debt to the Company at attractive terms and underline the Company’s belief that debt remains readily available to it as a leading specialist in the solar energy and energy storage sector.

RCFs remain an important component of the Company’s disciplined capital structure and continue to provide the Company with the flexibility to pursue value-accretive investments or to make repayments to the RCFs from operating and other cash flows.  The Company continues to prioritise its Capital Recycling Programme and expects to use the proceeds from the Programme to pay down existing borrowings under the Company’s RCFs. 

As at 31 December 2023, the Company had drawn £163m from its £205m short-term Revolving Credit Facilities and had an unaudited Gross Asset Value (“GAV”) of £1,173m.  Gearing levels remain well within the Company’s investment policy limit of up to 50% of GAV and as of 31 December 2023 the Company’s financial debt gearing was 28.8% and total gearing, which includes the fixed coupon preference shares, was 45.7%.

Ross Grier, COO and Head of UK Investments, NextEnergy Capital, commented:

“The extension of this revolving credit facility on improved terms is a testament to NextEnergy Solar Fund’s large portfolio of high-quality assets and the availability of debt financing for leading market participants.  We are happy to continue our strong relationship with Santander as the sole counterparty to this facility.  NextEnergy Solar Fund prides itself on its disciplined capital structure and continues to prioritise the capital recycling programme where the proceeds will be used to pay down existing RCF borrowings.”

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