New Energy Solar Manager (NESM) has plans to raise $250 million for an investment trust that will aim to broaden London’s renewable energy sector by investing exclusively in the United States.
U.S. Solar Fund PLC (USF), which is looking to float on the London Stock Exchange next month, is targeting an annual dividend of 5.5 percent once all its assets are operational.
NESM aims to deploy capital in the next six months.
The U.S. solar market is the second largest in the world, behind only China, and U.S. Solar Fund expects it to double in size.
“USF represents a unique opportunity for U.K. investors to access the highly attractive U.S. solar opportunity,” said Gill Nott, chair of the board of USF. “Investors in USF will benefit from the extensive, diversified pipeline of construction-ready solar assets which has been developed by NESM over the years, and the values of the pipeline solar assets are expected to re-rate as they become operational. With an anticipated target return of over 7.5 percent, USF offers investors long-term, stable, risk-adjusted returns along with positive social impact.”
