The European Band for Development and Reconstruction (EBRD), the Green Climate Fund (GCF) and the Dutch Development Bank (FMO) are supporting the expansion of renewable energy in Egypt with a US$ 87 million syndicated loan to Infinity Solar Energy SAE, an Egyptian renewable energy developer, and to ib vogt GmbH, an international solar developer established in Germany.
The funds will be used to construct and operate two solar photovoltaic power plants with a total capacity of 80 MW located at the Benban complex in Upper Egypt, which on completion will be the largest solar installation in the world, with a planned total capacity of 1.8 GW.
Each development will be funded through loans of US$ 87 million under an A/B structure, comprising EBRD A Loans of US$ 58 million, of which US$ 44 million will be from the Bank’s own account and US$ 14 million from the Green Climate Fund. FMO will provide B Loans of US$ 29 million. The development consortium was supported by Synergy Consulting and Solizer, which acted as transaction advisors for the two projects.
Harry Boyd-Carpenter, Head of Power and Energy Utilities for the EBRD, said: “We are delighted to welcome Infinity and ib vogt as new partners in this important project, which will significantly change the way that Egypt generates energy. The expansion of renewables is crucial not only for the environment, but also for the wider economy. It will create jobs, increase energy security and reduce the burden on the economy. The introduction of a regulatory framework that private investors can rely on will ensure that all this happens at sustainable cost and affordable prices.”