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Aquila fund acquires wind farm company in Finland

Aquila European Renewables Income Fund entered into an exclusive agreement to acquire all the shares of Finnish wind farm company Aalto Wind No. 2 Ltd. Oy, according to a Sept. 27 company news release.

The final consideration will amount to about 16% of the €154.3 million in proceeds raised from the fund's recent initial public offering.

Previously, the fund secured the exclusive right to acquire Aalto Wind by entering into a short-term financing agreement.

Aalto Wind is the holding entity for the li Olhava and the li Olhava Extension wind farms. The wind projects have a combined installed capacity of 34.55 MW and are eligible for the Finnish feed-in tariff, which is structured as a contract for difference, or CfD. The Olhava project qualifies for the CfD premium for about five more years, until mid- to late 2024, while Olhava Extension is eligible until September 2025.

Both projects also receive one "guarantees of origin" certificate per megawatt-hour produced. Aquila is expected to enter into a guarantees of origin purchase agreement for up to five years to further hedge market price exposure.

Aquila also plans to conclude power purchase agreement once market conditions and hedging solutions are feasible.

Aquila Capital Investmentgesellschaft Mbh is Aquila fund's investment adviser.