Asset manager New Energy Solar Management is looking to launch an initial public offering on the London Stock Exchange for a new solar fund targeting investments in the U.S. solar market.
The investor is aiming to raise $250 million for the US Solar Fund, offering up to 1 billion ordinary shares and/or C shares at a price of $1 per share. Spot exchange options are available for investments in sterling.
Subscriptions will be open until March 14, with admission to the U.K. Listing Authority Official List expected around March 20.
Fidante Capital is acting as sponsor, global coordinator and sole bookrunner on the capital raise.
The US Solar Fund will predominately target U.S. assets, up to a limit of 85%, and is mandated to deploy the remainder in other OECD countries in the Americas, such as Canada, Chile and Mexico.
The fund is evaluating a $4.8 billion pipeline of 14 investment opportunities comprising over 60 projects across 13 U.S. states. Target assets are underpinned by investment-grade power purchase agreements with terms of between 11 and 25 years.
Up to 30% of the fund capital may be deployed on an individual asset and it is expected that the fund will acquire as many as five assets in its first year.
The new fund has a target annual dividend of 5.5% once all solar assets are operational, with an average growth rate of 1.5% to 2% per year thereafter.
The US Solar Fund has a sister fund, New Energy Solar, which is listed on the Australian Stock Exchange.
The Australian vehicle has committed over $800 million since 2016 into 22 assets, including 20 large-scale assets in the U.S. These assets benefit from PPAs with investment grade counterparties such as utilities and universities.
The US Solar Fund will have the right to invest in projects pari passu with New Energy Solar, thereby allowing the new fund access to larger deals.
(A version of this article first appeared in IJGlobal)