Aquila Capital renewables fund targets EUR 300m from London IPO

Aquila European Renewables Income Fund Plc, whose investment adviser is Hamburg-based Aquila Capital, seeks to raise EUR 300 million (USD 337m) through a listing on the London Stock Exchange (LSE).

The fund published on Friday a prospectus in relation to an initial public offering (IPO) on the premium segment of LSE’s main market. It intends to use the proceeds from that listing mainly to acquire operational renewable energy assets such as wind, solar and hydropower plants across continental Europe and Ireland.

The announcement says that Aquila Capital has identified an Enhanced Pipeline of opportunities suitable for investments, including 16 assets in total. Nine are held in Aquila Managed Funds and seven are being negotiated. These opportunities are located in Iberia and Scandinavia.

The fund is targeting a total internal rate of return (IRR) of 6% to 7.5% over the long term, with an annual dividend yield of GBP 0.05 (USD 0.065/EUR 0.058) per ordinary share from 2021.

The results of the issue will be announced on May 31, while dealings on the bourse are expected to begin on June 5.

Numis Securities Limited serves as sponsor and bookrunner.

(EUR 1.0 = USD 1.125)

(GBP 1.0 = USD 1.304/EUR 1.159)

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