Renewable energy developer Scatec and the European Bank for Reconstruction and Development (EBRD) have agreed to create a renewable energy investment platform focused on Egypt, pairing project stakes with up to $221m (€197.34m) in EBRD funding commitments.
Under a share purchase agreement, Scatec will hold a 60% stake in the new venture, while EBRD will own 40%.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Of the up to $221m committed by EBRD, around $170m will be provided as equity, with the balance allocated to project-level guarantees.
The platform aims to accelerate the development and financing of Scatec’s near-term renewable energy projects in Egypt.
It is set to acquire a 40% equity interest in the Obelisk project, a 51% stake in the Shadwan project, and approximately 60% equity interests in both the Egypt Aluminium phase 1 (Dandara) and Energy Valley projects. Other minority co-investors will also participate.
The initiative will combine Scatec’s roles as sponsor, developer, engineering, procurement and construction (EPC) provider and asset manager with EBRD’s financial involvement and knowledge of local markets.
Scatec CEO Terje Pilskog said: “Egypt has become one of Scatec’s most important markets, and this platform reflects both the scale of what we are building there and the quality of the assets we have developed.
“Partnering with EBRD brings institutional capital and a long-term commitment that will accelerate Scatec’s growth ambitions across the region.”
The partnership is expected to support Egypt’s energy transition and could serve as a model for similar projects across the region.
The platform will be owned through a special holding vehicle.
EBRD’s investment is designed to enable greater capital efficiency through the recycling of funds and partnerships with institutional investors.
While initially focused on the identified Egyptian assets, the vehicle may, over time, invest in further opportunities across the wider Middle East and North Africa region.
EBRD sustainable infrastructure managing director Harry Boyd-Carpenter said: “This equity investment marks an important step in strengthening Egypt’s energy security. By partnering with Scatec, EBRD is providing long-term capital as a shareholder, helping expand access to reliable renewable energy.”
In May this year, Scatec and the National Bank of Egypt signed an equity partnership agreement for the Obelisk project.
