NextEnergy Solar Fund : NESF Research Note - Agenor

NEXTENERGY SOLAR FUND

(NESF LN)

Issuer-sponsored research available to all professional investors under MiFID II as a minor non-monetary benefit

9 Sept 2021		NPIII DELIVERING
Adam Forsyth
[e-mail]	NextEnergy Solar	Fund's	investment	in NPIII	is	delivering	on
[phone]		diversifying the fund in our view, with today's announcement by NPIII
Price (p)	98.2	of a 50MWp acquisition in Spain. The project is supported by an
Shares in issue (m)	588	attractive offtake agreement and is expected to be completed by Q2 2022.
Mkt Cap (£m)	578
Net debt (£m)	189	Agenor project acquired by NPIII
EV (£m)	767	NextEnergy Solar Fund's holding, NextPower III ESG (NPIII), has announced the
NAV (p)	98.7
acquisition of a 50MWp solar PV plant in Spain. The Agenor project is currently
Share price performance	under construction in Cadiz with Korean PV major, Hanwah Q CELLS acting as EPC
1m	-3.7%	and O&M contractor. Completion is expected in Q2 2022 and the project has a power
3m	-0.1%	purchase agreement	with a	multinational	investment	grade	corporate.	The
12m	-5.0%	acquisition will take NPIII's total generation capacity to 489MW. NPIII is targeting
12 m high/low	110/97
13% to 15% gross levered IRRs and based on assets acquired and in exclusivity is
Ave daily vol (30D)	775,909
ahead of this target.
Shareholders
Old Mutual Plc	14.2%	NPIII investment delivers diversification
Artemis Investment	10.8%	In June, NextEnergy Solar Fund announced a US$50m commitment to investment
Baillie Gifford	10.1%
in NPIII with a co-investment option. As part of the deal NESF's investment
Prudential Plc	8.9%
Legal & General	7.0%	manager will rebate back to NESF its full investment management fee related to the
Investec Plc	6.3%	commitment to NPIII, avoiding any fee-on-fee exposure. The commitment brings
Valu-Trac	5.6%	NESF a far greater degree of geographic diversification much earlier than could have
Vt Gravis Funds Icvc	5.1%	been delivered by direct project investment in our view. NPIII currently has two
Gov't of Sweden	5.0%
projects under exclusivity with a capacity of 315MW and a further 1.3GW in its
Fundrock Partners Lt	4.3%
immediate pipeline. It is targeting projects in selected OECD countries including the
Total for top 10	77.2%
		US, Portugal, Spain, India, Chile and Italy.
Next news	Q2NAV Q4
Business description

Solar generation investment fund

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NEXTENERGY SOLAR FUND LONGSPUR RESEARCH 9 SEPTEMBER 2021

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9 September 2021

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