Bluefield Solar Income (BSIF ) has sold half of a 112-megawatt portfolio of nine assets to GLIL Infrastructure in the second phase of its partnership with the group of pension funds.

The sale, in line with BSIF’s 31 March valuation, enables the £795m investment company to raise cash to repay some of its £184m overdraft and invest in its development pipeline of new projects.

The 8%-yielder also has long-term debt of £423m, bringing total borrowings to £607m, or 43% of gross asset value.

In December, Bluefield bought a 9% stake in a 247MW portfolio of assets alongside GLIL Infrastructure, which owns the remainder. GLIL comprises Local Pensions Partnership Investments, Greater Manchester Pension Fund, Merseyside Pension Fund, West Yorkshire Pension Fund and Nest, and has a £3 billion portfolio of infrastructure assets.

Bluefield flagged then it would sell half its stake in an asset to raise capital as the second phase, while the third phase will see the pair commit capital to its investment pipeline, assuming market conditions are supportive.

The identified development assets are expected to be connected to the grid within the next 12 months, Bluefield said.

The company reiterated its guidance in delivering its raised full-year dividend of 8.80p per share for the period ending 30 June 2024, an increase on the 8.60p paid out in the previous year.

‘We are delighted to announce a landmark transaction for the sector in the completion of the second phase of the company’s strategic partnership with GLIL, providing a significant source of capital for BSIF while validating the company’s net asset value (NAV) through this endorsement from an institutional investor of the highest calibre,’ said chair John Scott.

BSIF shares were steady at 108p at 20% below NAV of 133.9p. The wide discount prompted the board to launch a £20m buyback programme at the end of February.  

JPMorgan Cazenove analyst Christopher Brown said the sale was a positive development but he would have preferred to have seen the proceeds entirely used to pay down the revolving credit facility, which would still be £114m drawn. He maintained a ‘neutral’ rating.