London-listed Aquila European Renewables Income Fund PLC has raised €154.3 million in its initial public offering, just over half of its original €300 million target.
Applications will now be made to the London Stock Exchange for over 154 million ordinary shares to be admitted to trading on the London Stock Exchange's main market, with unconditional trading expected to begin on 5 June 2019.
The alternatives fund is being managed by the Hamburg-based asset manager Aquila Capital and its investment adviser team is led by Christine Brockwell, who has 13 years experience in renewable energy.
The aim is to develop stable returns by investing in a portfolio of renewable energy sources including wind, solar, and hydro. It will target investment opportunities across Europe, excluding the UK, and a total internal rate of return in the region of 6 - 7.5 percent over the long term, with an annual dividend yield of five cents per ordinary share from 2021.
It is only the fourth investment company to list in London this year amid the uncertainty from both Brexit and the continuing US-China trade war.
Ian Nolan, chair of Aquila European Renewables Income Fund PLC, was satisfied with the total raised due to the difficulties he perceived in the current investment climate and stated that the performance of the listed fund would give it a role in the renewable energy sector.
He said: “We are extremely pleased given the challenging political and economic environment to have raised nearly €155m million at launch, from high quality institutional investors. It is one of the most successful share placings by a listed fund this year and the first continental European manager in the segment. With a groundswell of interest in the asset class and a strong pipeline of opportunities, we look forward to playing a key role in developing the rapidly expanding renewable energy sector in Europe on behalf of our investors, stakeholders and society at large.”
Aquila Capital has 250 employees located in 14 offices across Europe and €8.2 billion assets under management.
