Downing Renewables & Infrastructure Trust (DORE) is investing €64.5m to buy a portfolio of eight operational hydropower plants in central and southern Sweden.

DORE, which raised £122.5m (€131m) in its initial public offering on the London Stock Exchange earlier this month, said it is making its first investment with the acquisition of the portfolio from Fortum Sweden.

The deal is being made on a debt and cash-free basis and is expected to complete in February 2021.

DORE said the portfolio will take-out leverage during the course of 2021 which will reduce the amount invested in the portfolio, adding that capital released would then be reinvested in the wider pipeline of opportunities available and further diversify the portfolio, the company said.

Hugh W M Little, chair of DORE said: “This is an exciting first acquisition for DORE with a demonstrable track record in one of our key geographical locations.

“Diversification is the key descriptor for DORE and this portfolio of hydropower plants epitomises what we set out to invest in to be able to offer our shareholders stable and sustainable returns while supporting the global efforts to combat climate change.”

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