Aquila Energy Efficiency Trust is seeking to raise up to £150m (€174m) in an initial public offering (IPO) as it lists on the London Stock Exchange on 2 June.

The company which will invest throughout the European Economic Area, Switzerland and the UK, said it will focus on investments with values of up to €10m, although larger investments may be made where available.

The company said its investment adviser Aquila Capital has identified a pipeline of €210m of energy efficiency assets for potential acquisition by the company, including certain assets held in Aquila managed funds.

The investment adviser has also identified certain opportunities with a total value of around €300m that may become available for investment after the first anniversary of admission on the London Stock Exchange.

Chair of Aquila Energy Efficiency Trust, Miriam Greenwood, said: “the company will allow investors to access a leading European investment manager with considerable experience in the sector and a diverse pipeline focused on proven technologies across the European Economic Area, the UK, and Switzerland.

“The company is intended to assist corporates in stepping forward to play their part in addressing the major challenges facing the planet from climate change, supporting important and ambitious national targets across the region to reduce CO2 emissions.”

 Alex Betts, senior investment manager of Aquila Capital said: “Today is a very exciting day for Aquila Capital as we launch a new listed fund offering on the London market that offers an opportunity for investors to gain exposure to a rapidly growing infrastructure sector.

“The highly diverse €210m advanced pipeline that we have assembled for the fund is predicted to generate stable cash flows for shareholders and significant environmental impact.”

Roman Rosslenbroich, CEO of Aquila Capital, said: “Aquila Capital’s energy efficiency strategy is the lateral connection of our investment capabilities in renewables and real estate.

“Energy efficiency is the “First Fuel”, it touches all parts of the economy and lies at the heart of addressing climate change. In our day-to-day interactions with investors we see a substantial and continuous appetite for European energy efficiency investments which are characterised by an attractive and stable risk-return profile due to largely contractually fixed cash flows and very limited exposure to fluctuations in the financial markets.”

To read the digital edition of the latest IPE Real Assets magazine click here.