Aquila European Renewables Income Fund has acquired its first assets since its Initial Public Offering (IPO) on the London Stock Exchange in May 2019.

The London-listed investment company, advised by Aquila Capital Investmentgesellschaft mbh, now has a 17.99 percent share in Aguia Enlica Lda, based in Portugal, and 100 percent of the shares in Danish company Holmen Wind Park II Aps.

Aguia Enlica Lda is a holding company with subsidiaries that operate a portfolio of 21 operational small hydropower plant. Currently, 75 percent of production is covered by a long-term feed-in tariff which gradually expires for the individual power plants.

The investment was part of the enhanced pipeline plans which were in the prospectus released in May 2019 and provides the fund with participation in a power plant portfolio with a long operating history. The capital committed in the acquisition amounts to approximately 10.8 percent of the proceeds raised in the IPO.

Holmen II is an onshore wind farm located on the west coast of Denmark, and Aquila’s investment consists of a plant with five Vestas V126 turbines. It benefits from a Danish premium tariff for a fixed volume of production, which will last until 2025. The consideration amounts to around 15.5 percent of the proceeds raised.

Commenting on the acquisitions, Ian Nolan, chairman of the company said: “The Board is very pleased that the Company has quickly been able to start deploying the capital raised at the end of May through its successful IPO into a diversified portfolio of renewable energy assets. These assets are expected to make a strong contribution towards Aquila European Renewables Income Fund’s dividend objective."

Christine Brockwell, senior investment manager at Aquila Capital believed the moves demonstrated the quality of the fund’s portfolio and the ability of the company to deliver for clients.

She said: "Completing these acquisitions means, that 26.4 percent of the proceeds raised from the IPO are now invested across a high quality, diversified portfolio of renewable energy generation technologies and geographies. This clearly demonstrates Aquila Capital’s ability to deliver attractive investment opportunities for the Company and its shareholders from its deep and broad investment pipeline. We are looking forward to advising the company on further investments.”