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Foresight Solar raises £60m

The placing’s outcome fell short of the London-listed fund’s initial target of £100m.

Foresight Solar Fund (Foresight Solar) has raised £60.1 million (€76 million; $96 million) via an initial placing and offer on the London Stock Exchange.

The amount collected is some way short of the target the vehicle had ascribed to the placing at the end of September, when it announced its intention to raise up to £100 million.

The proceeds will be used to complete the acquisition of the Bournemouth and Kencot solar farms, which are now operational and have a 74 megawatts (MW) combined generating capacity. Respectively located in Dorset and Oxfordshire, UK, they bring the fund’s total capacity to 185MW.

Foresight Solar last month also announced the creation of a placing programme to fund, along with leverage, further acquisitions. The programme, which runs for 12 months, will allow the company to issue 200 million new shares less the number of shares issued during the initial placing, that is 142 million new shares (worth about £142 million).

The 58 million new shares issued this week, the dealing of which started today, comprise 56,073,801 new shares issued via the initial placing and 1,926,199 new shares issued through the offer for subscription. Foresight Solar now has 208,000,000 ordinary shares in issue.

The company is one of four listed renewables funds that have announced capital raising plans in recent weeks. The remaining three are targeting an aggregate £320 million to fund deal pipelines and pay down debt acquisition facilities.

Listed renewables funds, a popular feature of the UK market since 2013, have raised a total of nearly £1.1 billion over the last two years.

Fundraising seemed to have hit a lull by spring this year – when a number of vehicles fell short of their target or shelved the exercise altogether – but most existing players have since said they would strive to raise fresh capital via secondary issuances over the coming 12 months.