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Aquila European Renewables Income Fund expands its Portuguese solar portfolio

Aquila European Renewables Income Fund (AERIF), a London-listed investment company advised by Aquila Capital Investmentgesellschaft mbh, has entered into a Sale and Purchase Agreement (SPA) to acquire 50 per cent of the equity in an unlevered Portuguese solar operating asset (Ourique). 

Closing of the transaction is expected to occur in April 2021.

Ourique is located in Alentejo, Portugal, and has an installed capacity of c60 MWp. The solar farm started its operations in December 2019 and its power price hedges cover 100 per cent of the produced energy until March 2026.

Ourique will save approximately 17,035 tons of CO2 emissions per annum, and an estimated 511,046 tonnes over the lifetime of the project (100 per cent interest basis).

Upon completion of the acquisition of Ourique, the Company will have committed c92 per cent of the capital raised to date in a mix of operating and construction assets in six European countries. Together with the other solar projects Benfica III and Albeniz, Ourique adds to the technology diversification targets of the Company and strengthens AERIF’s presence on the Iberian Peninsula.

Ian Nolan, Chairman of the Company, says: “We are pleased to announce that we have committed nearly all of the equity raised in October 2020 within five months. Ourique will contribute to reducing Europe’s carbon footprint, and it further diversifies our technology mix.”

Christine Brockwell, Head of Partnerships & Portfolio Management at Aquila Capital, the investment adviser, says: “Ourique is an excellent addition to AERIF’s portfolio and will directly contribute to its dividend cover. With this investment, the Company has again proven its ability to allocate funds prudently, within a short time frame.”   

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