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Aquila European Renewables Income acquires Albeinz solar PV project

201204 AERS sun dial

Aquila European Renewables Income Fund (AERS) has announced that Tesseract Holdings Limited, its fully owned subsidiary, has entered into a share purchase agreement (“SPA”) to acquire 100% of a Spanish solar PV construction project (Albeniz), along with an interest in the shared substation. The acquisition is structured as an unlevered investment. The Company’s estimated total capital commitment for Albeniz represents approximately 35% of its existing cash on hand at the fund level.

The share purchase agreement is subject to certain closing conditions, including (but not limited to) the commencement of construction and entering into a Power Purchase Agreement at pre-defined, satisfactory terms for the Company. The transaction is expected to close in late December 2020.

The Albeinz project

Albeniz is a 50 MWp project located in the South of Spain, which AERS says is one of the highest yield regions in Europe. Construction is expected to commence shortly, and the Company anticipates that the project will reach completion at the end of 2021. Albeniz is expected to have an operating life of 30 years. The project is also underpinned by a fixed price engineering, procurement and construction (EPC) agreement. The project will save approximately 31,800 tonnes of CO2 emissions per annum and an estimated 955,500 tonnes over the projected lifetime of the asset.

Comments from Ian Nolan, Chairman of Aquila European Renewables Income

“We are pleased to announce our first investment since closing our most recent capital raise, as well as adding an additional solar asset to further balance the portfolio’s technology allocation. Albeniz represents the Company’s first Spanish project and further expands our footprint in the Iberian region. We look forward to a successful closing.”

Comments from Christine Brockwell, Head of Partnerships & Portfolio Management at Aquila Capital

“This acquisition will make an excellent addition to the portfolio, offering further diversification for investors in terms of technology and geographic mix. We look forward to working with our construction partners under the EPC agreement to successfully deliver a high-quality project.”

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