In a financing move calculated to free up development funds ahead of the U.K.’s withdrawal of the Renewable Obligation Certificate (ROC) for large-scale solar PV projects on April 1, 2015, NextEnergy Solar Fund (NESF) has announced that it is to issue 250 million new shares in November.
The share placement program will deepen cash reserves previous augmented by an earlier IPO, monies that have so far been deployed in acquiring seven solar PV plants in the U.K.
"In view of the scale of the company’s pipeline of potential investments, it is targeting an initial issue of around 75 million new shares as part of the placing program," said a company statement. The remaining shares will be rolled out as needed over the course of the next 12 months.
This latest round of financing will enable NESF to develop up to £210 million ($340 million) of solar PV projects that the company says it has exclusive rights for an investment that is likely to add 186 MW of PV capacity to NESFs portfolio before April next year.
Additionally, the company has a larger pipeline worth around $540 million in solar projects waiting to be constructed in the U.K., joining the pre-ROC removal rush that NPD Solarbuzz anticipates will see as much as 2 GW of large-scale, ground-mount solar plants connected in the country over the next six months.