Aquila European Renewables Income Fund is to acquire a construction-ready wind farm in Finland with expected capacity over 43MW.
The €36.7m deal with Korkeakangas Wind for the 43.2MW Korkeakangas project is subject to certain conditions that are expected to be fulfilled by end of March 2020.
Korkeakangas is a ready-to-build onshore wind farm construction project, located in Karstula, central Finland.
Construction is expected to start in January 2020 and be fully operational in December 2021.
The wind farm is expected to have an operating life of 30 years.
Aquila will target an initial power purchase agreement of 10 years for the output from the project.
The investment is the first since an initial public offering in June and, upon completion, the fund will have deployed approximately 95.2% of the money raised in the IPO.
Aquila chairman Ian Nolan said: “This is the first investment by the company into a construction phase project and as such, moves us further up the value chain.
“Together with the very recently announced investment into project Svindbaek, this transaction will add another attractive wind farm to the company’s portfolio.
“The board is very pleased to see that the company has been able to successfully deploy nearly all of its raised capital proceeds, so far ahead of the 12 months period announced in the prospectus.”
Aquila Capital head of partnerships and portfolio management Christine Brockwell said: “This investment shows that the company has access to a strong pipeline of attractive construction projects and can balance the associated idiosyncratic risk across a well-diversified operating portfolio.
“Finland is a very attractive location for wind farm investments providing for stable weather conditions throughout the year.
“It rounds off a very successful deployment of nearly all proceeds raised by the company from the IPO in June 2019.”