Aquila Capital plans to raise €300m by floating a European renewables company on the London Stock Exchange.
The Hamburg-based alternative asset manager intends to launch an initial public offering for Aquila European Renewables Income Fund and list its shares early next month.
Aquila European Renewables Income Fund will target a diversified portfolio of renewable energy technologies including wind, solar, and hydro across continental Europe and the Republic of Ireland (excluding the UK).
The fund will acquire mostly operational assets which generate income, Aquila Capital said, adding that it has identified a “pipeline of opportunities across Iberia and Scandinavia”.
The company is targeting a total internal rate of return in the region of 6% to 7.5% (net of fees and expenses) over the long term.
Aquila Capital will act as the company’s investment adviser.
Christine Brockwell, lead investment adviser on behalf of Aquila European Renewables Income Fund, said: “This is a unique proposition for investors to take advantage of the rapidly advancing renewable energy sector in Europe and to participate in opportunities presented by Europe’s energy transition to a low carbon society, which is reshaping the energy market across the continent.”
Ian Nolan, chair of Aquila European Renewables Income Fund, said: “We are offering investors an opportunity that is diversified by geography, technology and revenue source.
“We are excited to float our fund in London which has established itself as the home of investment trust listings in Europe including a number of renewable funds.”
An earlier version of this story incorrectly said Aquila Capital plans to raise £300m. Aquila Capital plans to raise €300m.