Foresight to raise £200m through Solar Fund float

Alice Murray
05 September 2013

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Foresight Group is to list its Foresight Solar Fund on London Stock Exchange’s main market with plans to raise £200m.

The cash will be raised by placing 200 million ordinary shares priced at £1 each. The proceeds will be invested in a portfolio of UK ground-based solar power plants. Foresight already has binding commitments for a portfolio of solar assets, allowing the company to invest from the outset.

Foresight is taking advantage of structured assets underpinned by the UK government's support programme for renewable energy asset operators. In order to meet 2020 carbon targets, the UK government's renewable obligation certificate (ROC) provides a fixed 20-year retail price index (RPI)-linked revenue stream. The 2020 carbon target is a legally binding obligation to ensure that 15% of primary energy in the UK is derived from renewable sources by 2020. The regime provides a stable 20-year revenue stream that increases in line with RPI.

Foresight's solar investment team was set up in 2007 and launched its first solar fund, Foresight Solar Fund, in early 2008. The group now has around £450m of solar assets under management.

RBC Capital Markets is acting as sole co-ordinator, sponsor and bookrunner.