Initial Investment Update

FOR RELEASE July 8th, 2019

Aquila European Renewables Income Fund makes first project acquisitions in Portuguese hydro portfolio and Danish wind farm

Aquila European Renewables Income Fund ("AERIF" or the "Company") the London-listed investment company advised by Aquila Capital Investmentgesellschaft mbh has today announced the acquisition of its first assets since the successful Initial Public Offering (IPO) on the London Stock Exchange in May 2019.

The Company has acquired 17.99% of the share capital of Aguia Enlica Lda based in Portugal, and 100% of the shares in Danish company Holmen Wind Park II Aps.

Aguia Enlica Lda is a holding company whose directly and indirectly wholly owned subsidiaries hold and operate a portfolio of twenty-one operational small hydropower plants with a capacity of around 103 MW and an expected total annual production of approximately 312 GWh in northern and central Portugal. At present, approximately 75% of production is covered by a long-term feed-in tariff (FiT), which gradually expires for the individual power plants.

The investment was part of the enhanced pipeline, as disclosed in the prospectus dated 10 May 2019 and provides the Company with participation in an operational power plant portfolio with a long operating history. The capital committed in the acquisition amounts to c. 10.8% of the proceeds raised in the Company`s recent IPO.

Holmen II is an onshore wind farm located on the west coast of Denmark with 18 MW of installed capacity. The investment comprises five Vestas V126 turbines, of 3.60 MW each, in a location with excellent wind resources, which yields a capacity factor of 43% and a P50 annual production of c. 68.54 GWh.

The plant benefits from a Danish Premium tariff (the feed-in premium is structured as a Contract for Difference) for a fixed volume of production, which will last until 2025. Part of the enhanced pipeline, the consideration amounts to c. 15.5% of the proceeds raised.

Ian Nolan, Chairman, of the Company said:

"The Board is very pleased that the Company has quickly been able to start deploying the capital raised at the end of May through its successful IPO into a diversified portfolio of renewable energy assets. These assets are expected to make a strong contribution towards AERIF´s dividend objective."

Commenting on today's announcement, Christine Brockwell, Senior Investment Manager at Aquila Capital, the investment adviser: "Completing these acquisitions means, that 26.4% of the proceeds raised from the IPO are now invested across a high quality, diversified portfolio of renewable energy generation technologies and geographies. This clearly demonstrates Aquila Capital's ability to deliver attractive investment opportunities for the Company and its shareholders from its deep and broad investment pipeline. We are looking forward to advising the company on further investments."

For further details contact:

Media contacts:

Smithfield Consultants

Ged Brumby | 020 7903 2527

John Kiely | 020 3047 2538

Andrew McLagan | 020 3047 2006

Sponsor, Broker and Placing Agent

Numis Securities 020 7260 1000

Tod Davis

David Benda

Vicki Paine

NOTES

Aquila European Renewables Income Fund ("AERIF" or the "Company") is a recently established, London-listed renewable energy infrastructure investment company with the aim to provide investors with an attractive long-term, income-based return in EUR through a diversified portfolio of hydropower, onshore wind and solar PV investments across continental Europe and Ireland. Through the diversification of generation technologies, the seasonal production patterns of these asset types complete each other to balance the cash flow, while the geographic diversification serves to reduce exposure to one single energy market. AERIF is targeting an aggregate annual yield of 5.0% once fully invested.

Further details can be found on AERIF 's website at www.aquila-european-renewables-income-fund.com