Aquila European Renewables Income Fund (AERIF) has acquired a 25.9% stake in a Norwegian wind farm.

The London-listed investment firm, which raised €154.3m during its initial public offering (IPO) in May, said it has bought the stake in Midfjellet Vindkraft.

Aquila said the investment, the fund’s third investment since its IPO, was part of the enhanced pipeline it disclosed in May and the amount paid represents 13.3% of the proceeds raised.

Ian Nolan, chairman of Aquila European Renewables Income Fund, said: “Investments in projects backed by a power purchase agreement is a key element of the company`s investment strategy and value proposition. The acquisition is expected to make a strong contribution towards AERIF´s dividend objective.”

Christine Brockwell, senior investment manager at Aquila Capital, the investment adviser, said: “With the investment in Midtfjellet, the company is diversified across three continental European countries, Portugal, Denmark and Norway, with a good blend of revenues from feed-in tariffs and power purchase agreements.

”In aggregate 40% of the proceeds raised from the IPO are invested and we are looking forward to advising the Company on further investments in the near future.”