Foresight Solar Fund Ltd (LSE:FSFL) has reduced the size of its revolving credit facility by one-third while extending its term by two years, in a move the company says will cut fees and support its long-term investment plans.
The group, which owns a portfolio of solar energy and battery storage projects, said it had cut the facility from £150 million to £100 million.
The maturity date has been extended to 2028. The reduction is expected to save around £1 million in fees over the life of the loan.
The facility, which can be drawn in multiple currencies, will continue to charge interest at 1.90 % above the Bank of England’s overnight rate, known as SONIA, for sterling borrowings, and over EURIBOR for euro-denominated loans.
An additional £75 million is available through an uncommitted “accordion” option, which can be used if extra liquidity is needed.
Foresight Solar said the credit line, though now smaller, remains a key part of its strategy to deliver both income and capital growth. It no longer serves as a bridge to issuing new shares but offers flexibility for managing cash flow and investments.
“This flexible capital facility will continue to play a role in the delivery of Foresight Solar’s income and growth strategy,” the company said.
The revision is part of a broader effort to manage the balance sheet more actively, including reducing interest charges, lowering standby fees, and avoiding refinancing risks.
As an example, the company said it saved about £440,000 in 2024 by optimising use of the facility. It borrowed in euros to take advantage of lower EURIBOR rates and hedged against currency movements to manage risk.