Aquila to fund European renewable push via €300m listing

Share on facebook
Share on twitter
Share on linkedin
Share on reddit
Share on email
Proceeds raised at the London Stock Exchange will finance a pipeline outside of the UK (Credit: Flickr / Elias Gayles)

Germany's Aquila Capital is to fund a large-scale European renewable campaign via a flotation on the London Stock Exchange, setting its sights on non-UK projects.

The asset manager will support the purchase of at least 16 clean energy assets by listing a dedicated investment fund, with plans to raise €300 million (US$337 million) overall.

Scheduled to start trading on 5 June, the Aquila European Renewables Income Fund will invest equity and debt to buy solar PV, wind, hydro plants but also non-generation projects, including battery storage, distribution grids and transmission lines.

Teams led by Aquila senior investment manager Christine Brockwell will source deals from continental Europe and Ireland. A pipeline across Iberia and Scandinavia has already been identified, the firm said as it revealed its upcoming listing.

The fund will focus on already up-and-running, income-generating schemes. It will purchase assets from the broader Aquila group – nine such deals have been singled out – but also third parties, with external negotiations underway for seven other projects.

Investors backing the vehicle through the London exchange can expect a long-term net internal rate of returns around the 6-7.5% mark, according to Aquila. Project revenues, the firm explained, will come via PPAs – with individual offtakers taking up a maximum 25% per scheme – feed-in tariffs and others.

Aquila’s London IPO heralds a PV boost for a firm already owning 775MW of installed capacity across 39 plants, with €1.8 billion (US$2.02 billion) worth of deals recorded to date.

The firm entered the Iberian market via a 170MW Portuguese solar acquisition in 2017 and has since – thanks in part to a recent 700MW deal – boosted its renewable portfolio in the region past the 1GW mark.

The group’s appetite for Iberian assets was underscored once more by statements at the Large Scale Solar Europe conference, held in Lisbon this March. Speaking at a panel, Aquila director Andrew Wojtek described Spain and Portugal as “perfect” for subsidy-free solar assets.

Read Next

April 12, 2021
Spanish energy company Acciona has secured shareholder approval for an initial public offering (IPO) of its renewables division, providing a boost for the firm’s plans to reach 6GW of installed PV by 2025.
April 9, 2021
Spanish independent power producer Opdenergy is preparing to launch an initial public offering to help fund the development of 3.7GW of renewables projects across Europe and the Americas.
April 8, 2021
Iberdrola has formed a strategic alliance with insurance company Mapfre that will initially invest in 230MW of clean energy projects in Spain, including 130MW of solar PV.
April 7, 2021
Spanish renewables firm Ecoener has become the latest Spanish renewables company to plan an Initial Public Offering (IPO).
PV Tech Premium
March 31, 2021
As the solar industry continues to mature and adopt more merchant-led business models, how will asset management principles need to adapt? This exclusive recording of a panel discussion from our Solar Finance & Investment Europe event answered that very question.
March 29, 2021
Clean energy investment platform Renewable Power Capital (RPC) has announced the creation of a new joint venture that will develop and acquire 3.4GW of solar PV in Spain.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
April 13, 2021
Solar Media Events
April 20, 2021
Upcoming Webinars
April 28, 2021
4:00 - 4:30 PM CET