Foresight Issues $93.5 Million Solar Bond as U.K. Deals Rise
Foresight Group LLP, a British asset manager, issued a 60 million-pound ($93.5 million) bond to refinance U.K. solar plants and support plans to invest 250 million pounds within a year.
The bond, which will be listed in London, has been used to refinance the company’s existing photovoltaic plants in Britain, Sevenoaks-based Foresight said in a statement today. It’s the largest such bond in the U.K. and an endorsement of the low-risk profile of operating solar parks, the manager said.
Foresight is taking advantage of a fast-growing U.K. solar market, which saw a record number of large-scale projects completed in the first quarter. The company, which has several solar funds with plants in the U.K., Italy and Spain, raised 30 million pounds for British projects in the first quarter and aims to boost investments this year.
“Foresight plans to deploy a further 250 million pounds into new large-scale ground-based solar projects in the U.K. over the next 12 months,” said Ricardo Pineiro, an investment manager at the company. “We are finding growing appetite from both institutional and retail investors, who see solar power as a maturing asset class with an attractive risk profile.”
The index-linked revenue stream for U.K. solar assets offers an attractive fixed income-like return given the current low yields of treasury gilts, according to Foresight.
The bond was arranged by Independent Debt Capital Markets LLP, an affiliate of private bankers Mirabaud Securities Ltd. It refinanced projects in Kent, Somerset and Wiltshire.
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