Aquila European Renewables Income Fund (AERIF) is increasing its existing investment in Svindbaek Vindkraft with the acquisition of three additional wind turbines.
The London-listed renewable energy infrastructure investment company said it will buy Svindbaek II, which benefits from a Danish premium tariff, for €13.2m.
The acquisition of Svindbaek II completes the acquisition of all wind turbines associated with the Svindbaek wind farm.
Upon completion of this deal, AERIF will have invested 63.1% and committed another 18.9% of its €194.3m capital proceeds.
Ian Nolan, chairman of AERIF, said: “The board is pleased that the company has already been able to start deploying capital from its recently placed equity issuance.
“Svindbaek II is an operating wind farm that will immediately contribute to the investors’ dividend cover.”
Christine Brockwell, head of partnerships and portfolio management at Aquila Capital, the investment adviser, said: “The first quarter of 2020 has been very positive for AERIF. We successfully completed our €40m equity issuance and within a couple of weeks were able to deploy €13.2m into the high-quality Svindbaek II project.
“The acquisition of this asset underpins the company’s ability to generate a strong dividend yield and reinforces our investment proposition.”