Intended retail investor

The Shares are only suitable for investors: (i) who understand the potential risk of capital loss and that there may be limited liquidity in the underlying investments of the Company; (ii) for whom an investment in the Shares is part of a diversified investment portfolio; and (iii) who fully understand and are willing to assume the risks involved in such an investment portfolio. Typical investors in the Company are expected to be institutional and sophisticated investors, professional investors, high net worth investors and individual investors who understand the risks involved in investing in the Company and/or who have received advice from their fund manager, broker, solicitor, accountant or their appropriately authorised independent financial adviser regarding any investment in the Company.

US Solar Fund plc - Intermediaries Offer: USFP

Publication of Prospectus and offer opens

The Company's investment objective is to provide its shareholders with attractive and sustainable dividends, with an element of capital growth, through investing in a diversified portfolio of Solar Power Asset located in north America and other OECD countries in the Americas

Closing date: 1pm 5th May 2021

Please contact our dealing desk on 0203 700 2525 and we will investigate whether you are able to participate

Investment objective

To provide investors with attractive and sustainable dividends, with an element of capital growth, by investing in a diversified portfolio of solar power assets in North America and other OECD countries in the Americas


5.5 Cent
2021 target dividend

$200m IPO
proceeds fully committed

>679,000
Tonnes of CO2
emissions displaced


>7.5% p.a.
Target total return
(post fees before tax)

493MW DC
Across 42 projects

15.4 years
Average remaining
PPA term for 100% of
electricity output2

Key features

  • LSE-listed UK Investment Trust investing in solar power assets, taking advantage of the acceleration in the transition to renewable energy.
  • The Company acquires and operates solar power assets that have Power Purchase Agreements (PPAs) or other similar revenue contracts for a minimum of 10 years’ duration with investment grade offtakers. USF’s PPAs provide long-term price, volume, and cashflow stability.
  • The Company does not expect COVID-19 to materially impact operating cashflows in 2021.
  • Total returns of >7.5% p.a. over the asset life net of all fees and expenses, and before tax.
  • Target dividend of 5.5 cents per share once fully operational, and on a fully invested and geared basis with target growth of 1.5 – 2.0% p.a.
  • The Company confirms its 5.5 cents per share cash covered 2021 dividend in line with target at IPO.
  • New Energy Solar Manager (NESM, the Investment Manager) manages two listed solar power investment funds, US Solar Fund and New Energy Solar, which combined have invested approximately US$1.3 billion in 57 projects totaling 1.2GWDC.
  • As of 31 March 2021, the Investment Manager’s pipeline included 3.0GWDC of assets with a cash equity value of US$2.9 billion and a weighted-average PPA term of c.15 years.

Investment Opportunity

  • Compelling asset class: Solar power generation is a growing infrastructure investment opportunity and is developing rapidly in the US. Utility scale solar photovoltaic ( PV ) has, and is expected to continue, to account for the largest share of annual installations in the US solar market, with the forecast 87GW DC of utility scale solar installations between 2021 and 2025 expected to require a total investment of approximately US$87 billion at current prices.
  • Solar economics continue to improve: Renewable energy is an increasingly cost competitive alternative to the traditional source of energy (fossil fuels). The cost competitiveness of solar PV has already reached levels where adoption is driven by economics without the requirement of regulatory or legislative subsidies.
  • Strong US policy support: US states have substantial control over energy policy, with several having recently accelerated state level clean energy targets. Federal level support has increased with the extension of the 26% Investment Tax Credit ( ITC 1 ) for a further two years.
  • Attractive risk adjusted returns: Utility scale solar offers the opportunity to earn attractive risk adjusted returns backed by predictable, co tracted cashflows from investment grade counterparties while providing diversification from traditional investment classes.

USF Portfolio

USF’s $200m IPO proceeds are 100% committed and the Portfolio is now fully operational with 42 solar plants totaling 493MW DC and a weighted average PPA term remaining of 15.4 years.


Resources

USF Launch Announcement

Download

US Solar Offer LEaflet

Download

US Solar PLC Prospectus

Download

US Solar PLC Key Information DOC

Download

What are the risks and what could I get in return?

Risk indicator

The risk indicator assumes you will keep the product for 5 years. The summary risk indicator is a guide to the level of risk of this product compared to other products. It shows how likely it is that the product will lose money because of movements in the market or because the company is unable to pay you. This product is classified as medium-low risk. This rates the potential losses from future performance at a relatively low level, and poor market conditions are relatively unlikely to impact the share value. This Product does not include any protection from future market performance so you could lose some or all of your investment.

 

Timetable
The Offer timetable is now confirmed as follows:

  • Wednesday 5 May - 1.00 pm

    Close of the Intermediaries Offer
    Deadline for submission of Intermediaries Offer Order Form to Computershare

  • Thursday 6 May

    Allocation policy and settlement information expected to be available to Intermediaries including the US Dollar / GBP exchange rate

  • Friday 7 May

    Public announcement of the results of the Offer and allocation policy

  • Tuesday 11 May – 8.00 am

    Admission and dealings in Shares commence
    Settlement and delivery of Shares to Intermediaries via CREST

Further Information
Please contact our dealing desk on 0203 700 2525 and we will investigate whether you are able to participate

  • There is just one official listing but the shares trade and market prices are provided in USD and GBP as follows:
    ISIN for Ordinary Shares GB00BJCWFX49
    SEDOL in respect of Ordinary Shares traded in US Dollars:
    BJCWFX4 & in respect of Ordinary Shares traded in Sterling: BHZ6410
    Ticker symbol of the Ordinary Shares traded in US Dollars USF & in Sterling USFP
  • The minimum application amount is either £1,000 or $1,000, thereafter investors can apply for any amount.
  • Strong US policy support: US states have substantial control over energy policy, with several having recently accelerated state level clean energy targets. Federal level support has increased with the extension of the 26% Investment Tax Credit ( ITC 1 ) for a further two years.
  • UK retail investors can apply in GBP or USD. If they apply in GBP (which we expect most will) the FX rate at 5.00 pm on Thursday 6 May will be used to convert the USD price of $1.00 per share into a GBP price per share. We will notify you of the FX rate and GBP price that evening. Intermediaries can accept orders in both currencies however we request that you complete and submit separate Order Forms per currency at the time of the Close.

Please note, applicants must be in UK

Overseas Persons
Intermediaries may only accept applications from individuals located only in the United Kingdom. The Prospectus will specify that Retail Investors must comply with all laws and regulations applicable to their agreement to purchase Shares.

Retail Investors that can apply for Shares in the Intermediaries Offer
"Retail Investors" comprise investors in the usual type of the Intermediary's client base, which may include individuals aged 18 years or over, companies and other bodies corporate, partnerships, trusts, associations and other unincorporated organisations.

Retail Investors may apply to purchase Shares in the Intermediaries Offer through an intermediary. Retail Investors may also make applications that are designated to be made on behalf of an individual aged under 18.

Applications can be made through Intermediaries from an Individual Savings Account ("ISA"), a Junior Individual Savings Account ("Junior ISA") or a Self-Invested Personal Pension ("SIPP"), in each case in the United Kingdom. Individuals aged between 16 and 18 resident in the United Kingdom may apply topurchase Shares in the Intermediaries Offer through an Intermediary only if those Shares are to be held in a Junior ISA.

Pello Capital Limited offers investments and services to clients, which are primarily considered to be high risk investments. Some investments such as contracts for difference use leverage which can magnify gains but equally can magnify losses. Leveraged products may lose investors more than the amount they initially invested. This website is provided for information purposes only. It is not an offer to sell, or a solicitation of an offer to buy, any security, nor enter into any agreement or contract with Pello Capital Limited. All information provided is indicative and subject to market conditions and availability. Not all financial products are suitable for all investors. Before entering into any transaction you should ensure that you understand and have made an independent assessment of the suitability and appropriateness of the transaction into which you are entering and the nature and extent of your exposure to risk of loss in light of your own objectives, financial and operational resources and other relevant circumstances. You should take such independent investigations and such professional advice as you consider necessary or appropriate for such purpose. Past performance is no indicator of future success.


Pello Capital Limited, company number 5267797. Pello Capital Limited is authorised and regulated by the Financial Conduct Authority (FCA) with Financial Services register number 449720 and is a member of the London Stock Exchange (LSE) and Nex Exchange.