New Energy’s Investment Manager Established US$200 Million Investment Co. To Be Listed On LSE

April 12, 2019 03:19 PM AEST | By Team Kalkine Media
 New Energy’s Investment Manager Established US$200 Million Investment Co. To Be Listed On LSE

New Energy Solar Limited (ASX: NEW) has a diversified portfolio of solar assets globally. Through the diversified portfolio, the company help investors benefit from the global shift to renewable energy. The company does acquisitions of large-scale solar power plants with the long term contracted power purchase agreements.

New Energy Solar informed that New Energy Solar Manager Pty Limited, its investment manager and a subsidiary of Evans Dixon, has completed a capital raising of US$200 million for a US dollar denominated investment vehicle principally marketed to institutional and sophisticated investors in the United Kingdom (US Solar Fund plc or USF). USF is expected to be listed on the London Stock Exchange on 16th April 2019. USF focuses its investments in utility-scale solar power plants in the United States and other OECD countries in the Americas, which are “construction ready”.

The decision of establishing USF was motivated by the strong urge of European institutional investors to gain exposure in utility-scale solar infrastructure in the United States through a listed US dollar denominated investment vehicle. The establishment of USF is a strong endorsement of the investment rationale of New Energy Solar and the capabilities of its investment manager.

The creation of US Solar Fund plc will likely enable New Energy Solar to continue to grow and diversify through co-investment opportunities, as well as generate economies of scale for the business.

The CEO of the company, John Martin said that the USF mandate would assist the company in maintaining its market presence and provide access to a larger, more consistent, high-quality investment pipeline, with average deal sizes increasing. The capacity to co-invest will also allow the company to maintain its portfolio diversification, alongside an investor with a similar investment strategy. It is satisfying since sophisticated, global institutional investors are supporting the same investment strategy that the company has been implementing for the past three years, added by Mr. Martin.

An investment allocation policy will govern the co-investment opportunities, under which New Energy Solar and US Solar Fund plc will jointly seek investments in the United States and be offered the opportunity to invest in equal proportions, subject to available capital.

The investment manager of the company will waive payment of part of its management fees for NEW in recognition of the investment management economies of scale. The waiver results in a lower Base Management Fee structure, which will be effective from the listing date of US Solar Fund plc.

The fee reduction, however, is dependent on the successful LSE listing of US Solar Fund plc, the continuation of existing investment management arrangements for NEW and US Solar Fund plc and no change, or proposed change, in the management or governance of NEW or US Solar Fund plc.

On the price-performance front, the stock of New Energy Solar is trading at $1.385, a marginal increase of ~0.727% during the day’s trade with a market capitalisation of ~$489.09 million (on 12 April 2019 AEST 02:30 PM). The stock has generated a negative YTD return of 1.79%, with negative returns of 3.85%, 0.36% and 2.48%, respectively, over the past six months, three months and one-month period. Its 52-week high price stands at $1.50, and 52-week low price stands at $1.350, with an average trading volume of ~96,805.


Disclaimer

This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.


Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.


AU_advertise

Advertise your brand on Kalkine Media

Sponsored Articles


Investing Ideas

Previous Next
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.