In my recent valuation for NEW I mentioned that the had no debt and had been debt free since listing.  That is incorrect.  They have plenty of debt.  Their gearing at 31-Dec-2020 was 60.9% (Gross Debt / Gross Asset Value).

Slide 20 of their FY2020 full year results presentation (for the 12 months ended 31-Dec-2020) said:

Capital structure and financing

• External look-through gearing of 60.9%* is above target gearing of 50%
• Debt is primarily long-term and fixed-rate
• Key debt metrics (as at 31 December 2020):
  • Weighted average cost of debt = 4.65%
  • Weighted average debt maturity = 6.8 years
  • Weighted average fixed debt term = 16.5 years
  • Fixed rate proportion (10 years) = 96%**
  • Gearing = 60.9%*
  • Gross drawn debt = A$693.3m***

Notes:

1. (*) Gearing = Gross Debt / Gross Asset Value.
2. (**) Refers to proportion of debt service costs that are fixed.
3. (***) US$ values converted to A$ at the 31 December 2020 exchange rate of 1AUD:0.7694USD.

My error in stating that they had no debt was based on Commsec numbers which I believe are wrong due to the stapled security structure where a NEW stapled security comprises a share in New Energy Solar Limited (Company) and a unit in New Energy Solar Fund (Trust). This share and unit must be traded as one NEW stapled security on the Australian Securities Exchange (NEW stapled security). However, Company shares and Trust units each comprise separate assets for Australian capital gains tax purposes.  And one carries all the debt and the other carries none of it. Commsec stats obviously referred to the one without the debt, not the one carrying the debt.  Bottom line is they do have significant debt, and my statement in my valuation for NEW that they do NOT have debt - is wrong.

Further details on their structure can be viewed here:  https://www.newenergysolar.com.au/investor-centre/apportionment

I would also agree with @PeregrineCapital's assesment in their valuation for NEW that the company "...has suffered from poor management, a complex corporate structure and high gearing. As a result the market has very little faith in anything management says."

True, that!  And there are always things going wrong with their assets, which tend to always underperform expectations.  I guess that's why they are trading at such a large discount to their NAV.  Which suggests that the market doesn't trust their NAV either most likely.  The market is probably of the opinion that NEW's assets are likely worth less than what they think they're worth.  I guess we'll get some answers as the sale process for the Australian assets plays out over the next few months.  If they end up selling for less than book value, then that will suggest their book values (asset valuations, carrying values) are not realistic or accurate.  We shall see.  Not without risk, this one, but I like the risk/reward balance in this environment of a global move to much more renewable energy generation.  Even bad companies have the potential to be positively re-rated by the market.