Macquarie provides new NextEnergy facility

London-listed NextEnergy Solar Fund, which has used 90% of its IPO proceeds, has signed a £31.5m credit facility to carry on doing deals.

NextEnergy Solar Fund (NESF), which raised £85.6 million (€108.8 million; $140.0 million) in an initial public offering (IPO) on the London Stock Exchange in April this year, has signed a two-year, £31.5 million revolving credit facility provided by Macquarie Bank.

The facility will enable NESF to carry on acquiring solar power plants from its deal pipeline. In a statement, the firm said it was currently undertaking due diligence on 12 projects totalling 206 megawatts (MW).

The firm added that it had entered into letters of intent containing exclusivity provisions with respect to the potential deals, and expected to announce acquisitions shortly.

NESF’s most recent deal came early this month, when it agreed to acquire the 14.5 megawatt peak (MWp) Poulshot solar power plant in Wiltshire, England for £15.2 million. Poulshot became the seventh asset in the NESF portfolio and took committed IPO proceeds to the 90 percent mark.

NESF’s proceeds on listing were at the bottom end of the range it had targeted, having initially set its sights on £150 million when it announced its intention to float in January. Appetite for listed renewables was ebbing at the time, following a series of similar IPOs over the prior 18 months which had collected around £1 billion in aggregate.