US Solar Fund has agreed to buy a 39MW portfolio of six utility-scale solar power projects in North Carolina from Cypress Creek Renewables.
The London-listed investment firm, which entered into an exclusivity talk with Cypress Creek in June, said it has now executed binding agreements to buy the solar power projects.
USF’s acquisition is expected to be completed in December, simultaneous with tax equity financing and the commencement of construction.
USF said it intends to fund the acquisition and construction of the portfolio with cash of approximately $35m (€32m) and does not expect using debt at this time.
The company said it may consider raising debt against the portfolio during construction, or once it is operational.
Liam Thomas, CIO of USF’s investment manager New Energy Solar Manager, said since USF’s initial public offering eight months ago, the company has agreed to purchase more than 160MWDC of solar power projects on behalf of US Solar Fund and its investors.
“All have fixed-price power purchase agreements, for an average of 13.2 years. In determining which pipeline projects ultimately proceed to acquisition, we carefully consider the balance between our investment objectives and our investors’ wish to have initial public offering proceeds fully committed and invested as swiftly as possible.”