EBRD is investing US$ 60 million to become a shareholder in Egypt’s Infinity Energy

The EBRD is investing US$ 60 million to become a shareholder in Infinity Energy S.A.E., one of Egypt’s leading private energy companies through the issuance of new shares.

The funds will go towards developing the company’s pipeline of renewable energy and electricity distribution projects as well as electric vehicles charging stations.

This investment comes in parallel to the signature of a joint venture agreement between Infinity Energy and Abu Dhabi Future Energy Company PJSC “Masdar” under which Masdar will invest in Infinity Energy’s portfolio of renewable assets, and partner with Infinity in upcoming renewable energy projects in Egypt and Africa

The investment will contribute to Egypt’s ongoing energy transition by supporting the growth of renewable energy. The Egyptian government has declared a target for 20 percent of its electricity generation from renewable sources by 2022 and 42 percent by 2035.

In Egypt, the price of electricity produced by renewable projects has been steadily decreasing across the past several years to become more competitive than conventional fossil fuel sources. This has created strong demand in Egypt from commercial and industrial heavy electricity consumers to have access to electricity from private renewable energy producers.

The Egyptian government has pursued energy diversification and liberalisation by facilitating a market for private renewable energy development in recent years. However, access to equity financing remains key to the development of renewable energy in the country.

Harry Boyd Carpenter, EBRD Director for Energy EMEA, said: “We have had the privilege of working with the Infinity team since we lent to their Benban projects in 2017. We are very proud to take that partnership to the next level by becoming a shareholder in Infinity Solar Energy S.A.E. to further develop the renewable energy sector in Egypt. We are excited to support the company in its ambitious plans and its transition into an integrated energy solution provider.”

Egypt is a founding member of the EBRD. Since the start of its operations there in 2012, the Bank has invested over €5.8 billion in 105 projects in the country. In both 2019 and 2018, Egypt was the largest economy in which the EBRD invests, in terms of new commitments.

Original source: EBRD
Published on 15 January 2019