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Aquila European Renewables To Buy Finnish Wind Farm Aalto Wind No 2

(Alliance News) - Aquila European Renewables Income Fund on Monday said it intends to acquire ...

Alliance News 5 August, 2019 | 5:00PM
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(Alliance News) - Aquila European Renewables Income Fund on Monday said it intends to acquire Aalto Wind No 2 Ltd Oy later this year via a short-term financing agreement.

Aquila European said the final consideration for Aalto, "holding entity for a Finnish wind farm", is around 15.5% of the proceeds raised from its initial public offering.

As Aquila European raised EUR154.3 million through its IPO at the end of May, this would put the final consideration at about EUR24 million.

Aalto holds wind farm li Olhava plus the li Olhava extension, located around 50 kilometres to the north of Oulu and with an installed capacity of 34.55 megawatts plus an expected production of 99.11 gigawatts per annum.

The wind parks qualify for Finland's fee-in tariff support scheme, a contract-for-difference project for which Olhava is eligible for another five years with the extension eligible for another six years.

The parks also have guarantees of origin certificate eligibility, and each wind park gets one certificate per megawatt hour. Aquila European plans to enter a guarantee of origin puchase agreement for up to five years to increase hedging of its market price exposure.

The power purchase agreements for Aalto are to conclude "as soon as market conditions and hedging solutions are feasible".

Aquila European Chair Ian Nolan said: "The board is pleased with the disciplined and continuous capital deployment towards a diversified portfolio of renewable energy assets. The investment is a strong expression of the company's pan-European investment strategy. Following the acquisition, the company will be diversified across Portugal, Denmark, Norway and Finland, with an allocation by generation technology of 44% for onshore wind and 11% for hydro."

Shares in Aquila European closed up 2.0% at 96.96 pence on Monday.

By Anna Farley; annafarley@alliancenews.com

Copyright 2019 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Aquila European Renewables Income Fund 1.08 EUR 0.00 -

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