Aquila European Renewables Income Fund (AERIF) is to acquire the operational 30MW Tiza solar farm in Spain for an undisclosed price.
The deal is expected to close by the third quarter of this year.
Tiza is located in the Almería region, in the south of Spain, which benefits from attractive solar irradiation yields, AERIF said.
Construction was recently completed and the project has already commenced producing electricity and generating revenue, taking advantage of current high power prices observed in Iberia, the fund said.
Tiza will increase AERIF’s total solar PV portfolio generation capacity to 230MW.
AERIF expects to fund the transaction using its current surplus liquidity, which is approximately €130m, comprising existing cash on hand plus the existing revolving credit facility, which is currently undrawn and matures in April 2023.
Closing is subject to provisional acceptance of the plant – as per the existing engineering, procurement and construction contract – revolving credit facility lender consent, signing of a power purchase agreement and other conditions.
Under the sale and purchase agreement, AERIF is entitled to all economic profits generated by the asset up until closing and this will be reflected as a post-closing adjustment to the purchase price.