Aquila European Renewables Income Fund (AERIF) intends to increase its existing investment in Denmark’s Svindbaek Vindkraft HoldCo by acquiring three wind turbines known as Svindbaek 2.
The acquisition of Svindbaek 2 for a total consideration of around €13.2m completes the acquisition of all the turbines associated with the Svindbaek wind farm.
Svindbaek is an onshore wind farm located on the west coast of Denmark with 22.4MW of installed capacity – the facility saves around 18,337 tonnes of carbon dioxide emissions each year, totalling 458,433 tonnes over its projected lifetime.
The new investment provides for 9.6MW of installed capacity and has been operating since 2018.
The project benefits from a Danish premium tariff (feed-in premium structured as a contract for difference) for a fixed volume of production which is expected to last for approximately nine years.
Upon completion of the deal, AERIF will have invested approximately 63.1% and committed another 18.9% of its total proceeds (€194.3m).
AERIF chairman Ian Nolan 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.”
Head of partnerships and portfolio management at Aquila Capital, Christine Brockwell 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 2 project.
“The acquisition of this asset underpins the company’s ability to generate a strong dividend yield and reinforces our investment proposition.”