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EFG Hermes mulls $100m renewable energy fund in Egypt

EFG Hermes mulls $100m renewable energy fund in Egypt
Photo Credit: Arabianeye-Reuters
EFG Holding
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By: Amr Adel

Dubai – Mubasher: EFG Hermes Holding is currently considering launching a direct investment fund for companies to invest in Egypt’s renewable energy sector, Karim Moussa, Co-Chair of the Direct Investment Sector at EFG-Hermes Private Equity has revealed, highlighting that the fund’s capital amounts to $100 million.

It is expected that the full investment for the fund will be acquired within a year and a half at most, Moussa told reporters on the sidelines of an EFG Hermes-organised press conference in Dubai late Sunday.

EFG’s recent experience in investment in the wind-power sector in France in cooperation with a French firm was one of the reasons behind the creation of the fund, which aims to implement similar projects in Egypt, the Co-Chair said.

The Egypt-based firm had acquired a 49% stake in French wind energy company EDPR France in October 2014 in a deal worth $208 million.

According to the deal, EFG’s private equity arm will manage the investment, while the French firm will maintain operational control of the firm’s 33 wind farms with a total power-generation of 334 megawatts (MW).

EFG has a list of investors willing to invest in this vital sector in the Egyptian market at the present time, the EFG official noted, adding that InfraMed Fund, whose capital amounts to EUR 385 million, will likely contribute to EFG’s fund.

The Egyptian firm previously took part in establishing the InfraMed Fund, which invests in southern and eastern Mediterranean markets, with a focus on new projects.

InfraMed Fund’s investments include pumping $100 million in a project by the Egyptian Refining Company (ERC), which operates a state-of-the-art refining facility in Egypt at a total investment cost of $3.7 billion. Moreover, the investment fund contributed $40 million to establish the Arab World’s first utility-scale wind farm in Jordan to produce 117 MW.

InfraMed seeks to invest in energy and infrastructure in Egypt, Moussa said, indicating that his company is also awaiting public-private partnership (PPP) projects to examine its investment opportunities, particularly in the infrastructure sector.

Investing in renewable energy contributes to sustainable development added to capitalising on investment revenues for shareholders and partners alike, Moussa added.

 

Translated by: Nada Adel Sobhi