BSIF

Bluefield Solar Income Fund Limited

(‘Bluefield Solar’ or the ‘Company’)

NAV Update and £20m Share Buyback Programme

 Dividend Guidance Reaffirmed with Earnings Cover for the Full Year of Approximately Two Times

Bluefield Solar (LON: BSIF), the London listed UK income fund focused primarily on acquiring and managing solar energy assets, has today announced the Unaudited Directors’ Valuation as at 31 December 2023, equivalent to a Net Asset Value (“NAV”) of £831.3 million, or 136.0 pps (September 2023 136.4 pps, June 2023 139.7 pps).

Unaudited Net Asset Value as of 31 December 2023

Key movements in the NAV since 30 September 2023 include recognition of value from the Company’s Renewable Energy Guarantees of Origin certificates (“REGOs”) until 2030, which have been included in the valuation for the first time owing to sustained market prices over the last 12 months and expectations of future value from forecasters. In addition, the Company has recognised a slight uplift in expected power prices due to a small increase in long term power forecasts whilst short term hedging has predominantly offset reductions from near term power price weakness. There was additionally a minor negative adjustment due to operational cost updates and working capital movements.

The discount rate being applied remains unchanged at 8.0% (30 September 23: 8.00%) and inflation assumptions also remain unchanged from 30 September 23 (2024:3.5%, 2025-2029:3.0%, 2.25% thereafter). All other core assumptions also remain unchanged.

Full details on the movements for the 6 month period to 31 December 2023 will be outlined in the Company’s Interim Statement due for release on 28 February 2024.

Share Buyback Programme

The Board notes the recent weakness in the Company’s share price and the significant discount that the current share price represents to the value of the Company’s assets. Adjusting for the first interim dividend , the closing price of 99 pence per share (as at 14 February 2024) represents a discount of 26% to the 31 December 2023 NAV.

The Board of the Company keeps its capital allocation policy under regular review, evaluating the relative merits of further investment (into both new and existing assets), the management of debt and returning value to shareholders via dividends or through other methods such as share buybacks. As part of this review, and in the context of addressing what the Board views as the excessive discount at which the Company’s shares currently trade relative to the underlying NAV, the Board announces its intention to commence a share buyback programme. In the first instance it has allocated £20 million for the purchase of its own shares.

Share repurchases will be carried out under the existing shareholder authority granted at the last Annual General Meeting, held on 28 November 2023, which allows for purchases of Ordinary Shares by the Company in the market for up to 14.99% of the Company’s issued share capital. Any share repurchases will be funded from a combination of available liquidity, excess operating cash flows from the portfolio and the proceeds from any asset sales as already announced. It is expected that any share repurchases will be accretive to NAV per share.

The Company expects to announce its interim results for the half year ended 31 December 2023 on Wednesday, 28 February 2024. Until such announcement, the Company remains in a closed period in respect of those results and thus unable to buy its own shares, but the Board intends to commence share buybacks following the release of the interims and while the Company’s shares continue to trade at an excessive discount to NAV.

Dividend Guidance Reaffirmed

Shareholders will be aware that the Board of Bluefield Solar has recently declared a first interim dividend for the current financial year of 2.20 pps and has reiterated its target dividend for the full year of not less than 8.80 pps. This represents a dividend yield of 8.9%  based on the closing share price of 99p per share on 14 February 2024. The Company’s operations remain robust, trading conditions are attractive, and the Board expects this year’s dividend to be approximately two times covered.