First State has bought a wind power company in Portugal for two of its infrastructure funds.

The manager said it was buying Finerge from Enel Green Power’s Spanish subsidiary. 

The deal is expected to close by the end of this year.

The two funds – the European Diversified Infrastructure Fund (EDIF) and the Colonial First State Active Infrastructure Income Fund (AIIF) – will jointly own the company.

The deal is EDIF’s first in Portugal.

Philippe Taillardat, head of infrastructure investments at First State Investments, said: “This investment will allow us the opportunity to launch a successor fund to EDIF. We look forward to initiating this shortly.”

The fund, which has invested in the UK, Finland, Germany, Sweden, Denmark and Spain, has typically bought companies in the energy, communications and transportation sectors.

Finerge owns Portugal’s third largest portfolio of wind farms.

Taillardat said Finerge offered an attractive anticipated cash yield and return profile in line with the fund’s target return.

Finerge’s portfolio has an inflation-linked feed-in-tariff regime with a weighted-average remaining life of 16 years.