NextEnergy Solar Fund Ltd (LSE:NESF) (NESF), the solar investment fund managed by NextEnergy Capital, has announced a capital recycling programme aimed at reducing its short-term debt and exposure to potential interest rate rises.
The move will involve the sale of five subsidised solar assets, which will allow NESF to pay down its revolving credit facility (RCF) quickly.
Ross Grier, Managing Director of NextEnergy Capital, told Proactive that the decision to sell the assets was driven by the company's continued evolution, and a desire to ensure that its portfolio was fit for the evolving energy ecosystem.
Grier explained that the identified assets were not being recognised at their full value in the current portfolio and that selling them would enable NESF to redirect the capital into securing more exciting growth prospects for the fund.
NESF's portfolio includes 99 operational solar assets with 165 MW of capacity and is performing well, with the dividend cover bolstering.
The trust has committed to buying back shares provided that the discount continues, and the board is closely monitoring the situation.