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Highlights

  • Revolving credit facility cut from £150M to £100M, extended to 2028.

  • Move expected to save £1M in fees and reduce financial risk.

  • Facility remains central to strategy, with £75M accordion option retained.

Foresight Solar Fund Ltd (LSE: FSFL) has announced a strategic adjustment to its revolving credit facility (RCF), reducing the size by one-third to £100 million while extending its maturity date by two years to 2028. The solar and battery storage investor said the move is designed to lower costs and support long-term investment goals, aligning with its broader balance sheet management strategy.

The revised facility is expected to save approximately £1 million in fees over the life of the loan. Despite the reduction in size, Foresight Solar emphasised that the credit line remains a key financial tool within its capital structure, supporting income delivery and growth objectives without depending on new equity issuance.

The RCF, which is multi-currency capable, will continue to charge interest at 1.90% above the Bank of England’s SONIA (Sterling Overnight Index Average) for sterling drawdowns and at a similar premium over EURIBOR for euro-denominated borrowings. The company also retains access to an additional £75 million through an uncommitted accordion option, should further liquidity be needed.

“This flexible capital facility will continue to play a role in the delivery of Foresight Solar’s income and growth strategy,” the company said in a statement.

The revision is part of a broader financial management effort that includes reducing interest charges, minimising standby fees, and mitigating refinancing risks. In 2024, Foresight Solar reported savings of around £440,000 by strategically drawing down funds in euros—capitalising on lower EURIBOR rates—and hedging against currency fluctuations to maintain financial stability.

Importantly, the company clarified that the RCF no longer serves as a bridge for new share issuances, but rather offers flexibility in managing investments and cash flow across its portfolio, which includes solar and battery storage assets.