(Alliance News) - Aquila European Renewables Income Fund PLC on Friday said it has signed a sale and purchase agreement to acquire 100% of a Portuguese solar portfolio for around EUR16 million.
The investment company stated the assets in the portfolio are located in the south of Portugal with a total capacity of around 20 megawatt peak. It added that the projects are operational and will therefore immediately contribute to the dividend cover. Each project is expected to have an operational life of up to 30 years.
As a condition to closing the agreement, the unnamed seller will arrange power purchase agreements with suitable counterparties. Subject to satisfying this condition, the transaction is expected to complete in October.
Aquila highlighted the portfolio will save around 9,495 tonnes of CO2 emissions per year and an estimated 284,855 tonnes over the projected lifetime of the projects.
"We are pleased to announce our first investment in a portfolio of solar projects which are located in one of the highest yielding solar regions in Europe. Besides the positive impact on Europe's carbon footprint, this acquisition diversifies our portfolio and means that we will have invested 92% of the capital we have raised to date in approximately 30 distinct projects across four countries and three different technologies," said Chair Ian Nolan.
Shares in Aquila European were untraded on Friday morning in London, last quoted at 99.50 pence each.
By Ife Taiwo; ifetaiwo@alliancenews.com
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Aquila Euro. (AERS)