Revolving Credit Facility

RNS Number : 9590V

Aquila European Renewables Income

20 April 2021

 

20 April , 2021

Aquila European Renewables Income Fund plc secures EUR 40 million revolving credit facility

Aquila European Renewables Income Fund plc ("AERIF" or "the Company"), the London-listed investment company advised by Aquila Capital Investmentgesellschaft mbh, today announces that its wholly owned subsidiary, Tesseract Holdings Limited has reached contractual close in relation to a two year, EUR 40 million secured revolving credit facility ("RCF"). Lenders under the RCF include ING Bank N.V. and The Royal Bank of Scotland International Limited.

As outlined in the Company's Initial Public Offering ("IPO") prospectus, the Company may make use of short-term debt, such as a revolving credit facility, to assist with the acquisition of suitable opportunities as and when they become available. Under the prospectus, such short-term debt will be subject to a separate gearing limit so as not to exceed 25 per cent of the Gross Asset Value at the time of entering into (or acquiring) any such short-term debt.

The RCF has a margin of 1.85% over EURIBOR. The facility also benefits from additional flexibility, subject to bank consent and certain conditions, including:

· an accordion option which enables the Company to upsize the facility limit up to EUR 100 million; and

· an extension option, which allows the RCF tenor to be extended by a further two years.

Ian Nolan, Chairman of the Company, said: "We are pleased to announce this important milestone today. The RCF will provide significant flexibility for the Company to fund its growth in a capital efficient manner going forward. We believe the RCF is a further endorsement of the Company's asset portfolio and success in deploying capital since the IPO."

Commenting on today's announcement, Michael Anderson, Senior Manager at Aquila Capital, the investment adviser: "We are delighted to reach contractual close in relation to the RCF, given its strategic importance for the Company. We thank the banks for their support and look forward to proactively utilising the RCF to support our promising pipeline of opportunities."

Ends

For further details contact:

Media contacts:

Smithfield Consultants

Ged Brumby | 020 3047 2527

John Kiely | 020 3047 2538

Andrew McLagan | 020 3047 2006

Sponsor, Broker and Placing Agent

Numis Securities 020 7260 1000

Tod Davis

David Benda

Vicki Paine

NOTES

Aquila European Renewables Income Fund plc ("AERIF" or the "Company") is a London-listed renewable energy infrastructure investment company with the aim to provide investors with an attractive long-term, income-based return in EUR through a diversified portfolio of hydropower, onshore wind and solar PV investments across continental Europe and Ireland. Through the diversification of generation technologies, the seasonal production patterns of these asset types complete each other to balance the cash flow, while the geographic diversification serves to reduce exposure to one single energy market.  AERIF is targeting 5.0 cents per ordinary share in relation to the financial year ending 31 December 2021, with the aim of increasing this dividend progressively over the medium term.

Further details can be found on AERIFs website at www.aquila-european-renewables-income-fund.com  

 

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