US Solar Fund – Making hay

US Solar Fund Plc (USF) is a newly established closed end A company that is set up to make investments on behalf of its shareholders (also called a closed-end fund and, in specific circumstances, an investment trust).

Legally, an investment company is any company whose business consists wholly or partly in the making of investments. All investment trusts are investment companies but not all investment companies are investment trusts – they would have to satisfy the additional criteria listed above.

As companies, shares in investment trusts are issued as publicly traded shares that are listed on stock exchanges. A closed-end fund raises a prescribed amount of capital through an IPO by issuing a fixed number of shares.

>investment company that is focused on the large and growing solar market in the US. It invests in utility scale solar farms and sells the electricity generated to creditworthy counterparties through long-term power purchase agreements (PPAs).

From 31 March 2020 or when its assets are operational, USF is targeting a yield of at least 5.5% per annum (paid quarterly), prior to this, it is targeting an initial annual A distribution of money from a company. Most investment companies try to pay dividends from income but they are now allowed to pay dividends from capital.

>dividend yield of 2 to 3%. It is also targeting a The total return is the return generated by the move in the share price or net asset value including dividends or income.

When dividends are not included in the performance calculation, it is known as Capital Return

>total return
in excess of 7.5% per annum (after fees and before tax) over the life of its assets.

USF’s shares will be Listed, when used to describe a UK company, means a company that is listed on the main market of the London Stock Exchange. All listed companies can be described as quoted companies but not all UK quoted companies are listed.

>listed on the The companies with a full listing on the London Stock Exchange.

>main market
of the London Stock Exchange. The The person or people who have been given the job of managing the company’s assets by the Board of the investment company.

>investment manager
has an active pipeline of USD4.8bn of assets and it expects to have fully committed the proceeds of its IPO is the abbreviation for Initial Public Offering

>IPO
within six to nine months of admission; be fully operational within a further 12 months; and pay its first dividend in November 2019.

Income from utility scale solar farms in the US

USF’s The Investment Objective is what an investment company is aiming to achieve (e.g. growth of income or growth of capital).

The Investment strategy is the way that the investment company will meet its Investment Objective.

>investment objective is to provide investors with attractive and sustainable dividends, with an element of capital growth, by investing in a diversified The invested assets of a fund such as an investment company, investment trust or OEIC.

>portfolio
of solar power assets in North America and other OECD or The Organisation for Economic Co-operation and Development is an intergovernmental economic organisation with 36 member countries, created to stimulate economic progress and world trade.

Its mission is to promote policies that will improve the economic and social well-being of people around the world and provides a forum in which governments can work together to share experiences and seek solutions to common problems.

The OECD works with governments to understand what drives economic, social and environmental change. They measure productivity and global flows of trade and investment and analyse and compare data to predict future trends.

A key role is the setting of international standards on a wide range of things, from agriculture and tax to the safety of chemicals.

The OECD works with business, through the Business and Industry Advisory Committee to the OECD (BIAC), and with labour, through the Trade Union Advisory Committee (TUAC).

The OECD also recommends policies to member countries that better or protect the quality of citizens lives.

To find out more about the OECD please click here

The current member countries are:

Australia
Austria
Belgium
Canada
Chile
Czech Republic
Denmark
Estonia
Finland
France
Germany
Greece
Hungary
Iceland
Ireland
Israël
Italy
Japan
Korea
Latvia
Lithuania
Luxembourg
Mexico
Netherlands
New Zealand
Norway
Poland
Portugal
Slovak Republic
Slovenia
Spain
Sweden
Switzerland
Turkey
United Kingdom
United States

OECD or The Organisation for Economic Co-operation and Development

>OECD
countries in the Americas. USF will predominantly generate revenue by selling the electricity generated through long-term PPAs (a target weighted-average in excess of 15 years) with creditworthy (predominantly investment grade) counterparties. It may also invest in battery storage and may derive revenue from this as well.

The company will target construction-ready, in-construction, or operational solar power assets that are designed and constructed to have an asset life of at least 30 years and are expected to generate stable electricity output and revenue over the lifespan of the asset.

The details of the share issue, including the risk factors that investors should take into consideration, are more fully described in the A Prospectus is a formal legal document that is required by and filed with Stock Exchange Authorities and Regulators that provides details about an investment offering for sale to the public. See Initial Public Offering (IPO).

The prospectus is the first offering document provided by a company and includes most of the details of the business and legal structures. An investment Company Prospectus contains details on its objectiveinvestment strategy, risks, performance, distribution policy, fees and expenses and fund management.

>prospectus published on 26 February 2019 and we urge readers to read this before making any investment decision.

USF : US Solar Fund – Making hay

190305 USF IPO note QD

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