NextEnergy Solar Fund (NextEnergy), the UK-listed renewable energy investment firm, has agreed to acquire the 10.2-megawatt peak (MWp) Condover solar power plant in Shropshire, England, for up to £11.7 million (€14.9 million; $18.7 million).
The deal means that NextEnergy has now fully allocated the £85.6 million in initial public offering (IPO) proceeds that it raised on the London Stock Exchange in April this year. The firm had initially set its sights on raising £150 million when it announced its intention to float in January.
The proceeds have been invested in eight assets, accounting for a total of 78MWp.
The Condover deal sees NextEnergy begin dipping into a two-year, £31.5 million revolving credit facility that was provided by Macquarie Bank last month to allow it to carry on making new investments. For Condover, the firm has committed £6.6 million of the facility, representing 21 percent of the total.
At the time NextEnergy signed the facility, it said it was undertaking due diligence on 12 projects totalling 206 megawatts.
Condover is expected to achieve commissioning by March 2015 under the terms of an engineering, procurement and construction (EPC) contract and will accredited under the 1.4 Renewable Obligation Certificate regime. If the plant is not commissioned by March 2015, NextEnergy has the right to terminate the deal.