EBRD becomes shareholder in Egypt’s Infinity Energy

CAIRO - 16 January 2020: The European Bank for Reconstruction and Development (EBRD) said on Wednesday that it will invest US 60 million dollars 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, EBRD posted on its website, according to state news agency, MENA.

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 liberalization 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's energy sector liberalization and embrace of its renewable resources are creating incredible opportunities and Infinity is ideally placed to exploit these. We are also very pleased that through this investment we will further deepen our longstanding partnership with Masdar.”