Foresight Solar Fund Ltd (LSE:FSFL) announced the sale of a 50% stake in its Lorca portfolio in Spain in a deal worth €26.9 million, which the company said was a 21% premium.
Proceeds are earmarked for debt repayment. It will be used fully to further pay down a variable rate revolving credit facility to lower gearing and reduce interest costs.
Foresight noted, meanwhile, that talks are also advancing over a potential sale of some 200MW of operational assets, and this process is expected to continue into 2024.
"After a comprehensive analysis of our portfolio, we concluded these assets were the ideal option to start our divestment process,” said Foresight Solar chair Alexander Ohlsson.
“This deal clearly exemplifies our strategy: we acquired Lorca at the ready-to-build stage and capitalised on the investment manager's expertise to construct the assets and bring them to operations, realising the full financial upside for the company.
“We are now selling a stake at a premium to crystallise value and recycle capital into other options while maintaining exposure to an asset that will continue to deliver long-term revenues and contribute to dividend cover."