Centrus advises USS on £100m preferred equity renewables investment

Transaction Overview

In August 2019, Centrus advised The Universities Superannuation Scheme (“USS”) on the completion of a £100m Preferred Equity investment in NextEnergy Solar Fund Ltd (“NESF”), made via USS’ L1 Renewables investment vehicle.

USS is one of the UK’s largest pension schemes, providing pension plans to 440,000 members and has in excess of £68bn invested in public and private markets. USS is a responsible, long-term investor, having invested in renewable energy and clean tech since 2000 and actively engages with policy makers on the climate change agenda.

NESF is a leading investment manager in the solar energy sector, focused on sourcing, acquiring, operating and managing solar PV assets in the UK and OECD countries. It currently owns 87 solar plants with a total installed capacity of 691MWp and is the largest LSE listed solar energy fund by installed solar capacity and market capitalisation.

The preference shares carry a fixed dividend yield of 4.75%, are redeemable by the company from 2030, and holders have the right to convert to ordinary shares or B shares from 2036. Further transaction details can be accessed through the RNS announcement available on the London Stock Exchange website.

For more information, please contact Adrian Li, Managing Director – Centrus

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