Aquila European Renewables Income Fund increases commitment in The Rock
Aquila European Renewables Income Fund (AERIF), a London-listed investment company advised by Aquila Capital Investmentgesellschaft mbH, has increased its potential commitment in The Rock (the "Project") by up to EUR35.6 million to bridge the Company's share of expected future draw-downs under the Project's existing debt facility required to bring the Project to completion.
The Company has also announced that it has made its first draw-down under the bridge of approximately EUR3.6 million.
The Rock is a 400MW onshore wind farm project located in Norway, which is currently under construction, with completion expected by Q4 2021. As announced on 5 June 2020, the Company acquired approximately 13.7 per cent of the Project, noting a possibility to increase its commitment in due course.
The bridge is being provided while the Project satisfies certain conditions required in order to draw-down under its debt financing agreement, which the Company expects to be met in the near future. The Bridge is structured as a shareholder loan at an attractive fixed rate. Upon satisfaction of the conditions, Project debt will be used to fully repay any amounts drawn under the Bridge (pro rata to the Company's interest in the Project). The Company's 13.7% interest in the Project remains unchanged as a result of the Bridge. Subsequent to the initial draw-down under the Bridge, when combined with the Company's existing investment in The Rock equates to a total investment of approximately EUR41 million to date. AERIF intends to fund the Bridge with existing surplus liquidity.
The Company and its investment adviser look forward to working with local authorities, Project lenders and contract counterparties to reach Project completion.