Downing has announced that Downing Renewables & Infrastructure Trust plc (DORE) is to acquire a portfolio of eight operational hydropower plants in central and southern Sweden from Fortum for €64.5 million – DORE’s first investment.
The Portfolio comprises eight hydropower plants across three different rivers in Sweden, with annual average production of over 100GWh. It has an operating track record spanning more than five decades.
DORE, which raised £122.5 million in its IPO on the London Stock Exchange in December, is targeting investment in a diversified portfolio of renewable energy generating assets and other infrastructure assets in the UK, Ireland and Northern Europe.
The initial investment in the hydropower plants amounts to approximately 48% of the IPO proceeds. DORE anticipates that the plants will take-out leverage during the course of 2021, which will reduce the amount invested. Capital released would then be reinvested in the wider pipeline of opportunities available and further diversify the portfolio.
This project forms part of the further renewable energy and infrastructure investments identified by Downing LLP and disclosed in DORE’s prospectus dated 12 November 2020.
"This is an exciting first acquisition for DORE with a demonstrable track record in one of our key geographical locations,” commented Hugh W M Little, Chair of Downing Renewables & Infrastructure Trust plc. “Diversification is the key descriptor for DORE and this portfolio of hydropower plants epitomises what we set out to invest in to be able to offer our shareholders stable and sustainable returns while supporting the global efforts to combat climate change."
The transaction is expected to complete in February 2021.