Bluefield Solar Income Fund (LSE:BSIF) has executed phase two of its strategic partnership with GLIL Infrastructure by selling a 50% stake in a 112-megawatt portfolio of UK solar assets for £70 million in cash.
Its assets are spread across southern and central England and include nine operating sites backed by renewable obligation certificates, with 78 megawatts under 1.4 ROC accreditation and 34 megawatts under 1.3 ROC accreditation.
Proceeds from the transaction will be used to repay a portion of Bluefield's revolving credit facility and fund the construction of approximately 17 megawatts of development assets, marking the start of the third phase of the tie-up.
As part of the next stage, Bluefield and GLIL plan to invest in the company's development pipeline, assuming favourable market conditions. The 17 megawatts of development assets identified in Auction Round 4 Contracts for Difference are expected to be connected to the grid within the next twelve months.
"The new projects in development provide an exciting opportunity for significant value accretion for shareholders while also expanding the UK's solar resources to help achieve our national climate goals," said chairman John Scott.
GLIL Infrastructure is a partnership of UK pension funds investing in core UK infrastructure.
Bluefield Solar's current debt stands at £607 million, with a leverage level of about 43% based on the March 2024 net asset value.
In the announcement on Monday, Bluefield reiterated its plan to pay a full-year dividend of at least 8.8p a share (up from 8.6p).