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Aquila fund reaches deal to acquire Finnish wind farms

Aquila European Renewables Income Fund has secured the exclusive right to acquire two Finnish wind farms totaling 34.55 MW.

The fund will acquire Aalto Wind No. 2 Ltd. Oy, the holding entity for the li Olhava and the li Olhava Extension wind farms, by entering into a short-term financing agreement. The final consideration will amount to approximately 15.5% of the €154.3 million proceeds raised from fund's recent IPO.

The wind parks qualify for the Finnish feed-in tariff, which is structured as a contract for difference, or CfD. The Olhava project is eligible for the CfD premium for approximately five more years until mid to late 2024, while Olhava Extension is eligible for approximately six more years 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 the market price exposure.

"The planned acquisition is expected to make a strong contribution towards AERIF's dividend objective and demonstrates our broad investment reach," said Christine Brockwell, senior investment manager at Aquila Capital Investmentgesellschaft Mbh, the fund's investment adviser. "With completion of the acquisition, the company will be 55.1% invested."