Aberdeen Standard Investments is to acquire a 66% interest in Outokummun Energia, a regional energy business based in Outokumpu in North Karelia in Finland.

The deal will be funded through the SL Capital Infrastructure II fund and is Aberdeen Standard’s fourth infrastructure transaction in Finland.

Outokummun Energia produces, sells and distributes electricity and heat, while supporting reduction in pollution emissions.

The company has a 1,000km electricity distribution network and a 30km district heating network with the heat predominantly sourced from environmentally friendly fuel sources.

Formed in 2000, the company had approximately 5,280 electricity distribution and 4,260 energy customers by the end of 2019.

The company’s economic infrastructure programme focuses on investing in core infrastructure assets in Europe, and already holds 12 other assets including: Suomen Kaasuenergia, a gas distribution business in Finland; two district heating businesses in Finland; a portfolio of solar PV plants in Poland; a portfolio of hydroelectric plants in Norway; four rolling stock assets in the UK; two stakes in offshore gas transmission pipelines in the Netherlands, and two liquid bulk storage terminal businesses in the UK and Germany.

“The infrastructure team’s fourth investment in the Finnish infrastructure market follows our strategy to acquire and manage premium regulated infrastructure assets in Europe, and to work on behalf of our investors with local stakeholders to deliver safe and reliable essential services to local communities,” said Dominic Helmsley, head of economic infrastructure at Aberdeen Standard Investments.

“We are delighted that the City of Outokumpu have selected us as their preferred partner in the continued delivery of electricity and heat services to Outokummun Energia’s clients and to continue the development of the company.”

Pekka Hyvönen, Mayor of the City of Outokumpu, said: “The transaction is well suited to the city’s risk management policy and enables a more efficient use of capital by the City of Outokumpu.”