The European Bank for Reconstruction and Development (EBRD) is increasing its equity stake in Egyptian renewable energy developer Infinity.
The EBRD is a current shareholder in the company, having invested US$60m (€57.7m) in 2020.
Alongside the remaining original amount, an additional US$41.5m will support Infinity’s plans to expand within Egypt and beyond, targeting the company’s pipeline of development and acquisition projects.
A portion of the Bank’s proceeds will go towards acquiring African renewable energy platform, Lekela Power, through its subsidiary, Infinity Power Holding, the joint venture established with Masdar.
The Lekela acquisition will add 1.1GW of operational assets and transform Infinity Power into the largest African renewable energy platform.
Non-generation assets such as new electric vehicle (EV) charging points and the electricity distribution network will also benefit from development.
Infinity has a significant pipeline of renewable energy projects in Egypt that will help the Egyptian government achieve its goal that by 2035, 42% of its energy mix will come from renewables.
Managing director for the EBRD’s Sustainable Infrastructure Group Nandita Parshad said: “We are thrilled to support Egypt’s green economy transition by promoting strong private sector participation in its energy market through our commitment in Infinity Energy, which will see it become one of the largest renewable energy providers in the Middle East and Africa, especially following the Lekela acquisiton.
“Egypt is an energy super power with substantial solar and wind resources that has the potential to become a regional leader in renewable energy generation.”
Mohamed Ismail Mansour, co-founder and CEO of Infinity, added: “We appreciate the support that the EBRD has always given us and value this partnership wholeheartedly.
“It is imperative for us to partner with the right organisations that truly add merit to our efforts in delivering sustainable energy solutions for all.
“We look forward to building a sustainable and green future, not only for Egypt but also all of Africa, and we aim to achieve this through the valuable support of all our strategic partners.”
Infinity is a long-standing EBRD client and Egypt’s leading renewable energy developer with a portfolio of 184MW operating solar PV power plants in Egypt, and a pipeline of approximately 1.95 GW in the region.
Egypt is a founding member of the EBRD. Since the start of its operations there in 2012, the EBRD has invested more than €10bn in 154 projects.