Egyptian investment bank to support renewable energy development

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Egyptian investment bank EFG Hermes eyeing further investment in renewable energy projects and looking to possibly launch a leasing business in Egypt in the coming months amidst an improving economy in the country.

Speaking to Reuters ahead of the bank’s 11th Annual EFG Hermes One-on-One Conference, which kicked off in Dubai on Monday, EFG Hermes CEO Karim Awad said the bank wanted to expand its private equity business and was looking at Egypt’s renewable energy sector.

In October, EFG acquired a 49% stake in French wind energy company EDPR France in a deal worth $208 million. The bank described the transaction “as part of the firm’s strategy of broadening its traditional role as a catalyst for institutional capital into MENA markets by helping its partners and investors tap compelling global opportunities.”

In January, Egyptian President Abdel Fatteh el Sisi announced plans to build solar and wind power plants with a combined capacity of 4.3 GW in the next three years.

New of EFG’s growing interest in the Egyptian renewable energy sector comes as Bahrain-based investment and development firm Terra Solar Ventures – run by Swiss financier David Heimhofer — is making headlines with a lofty plan to invest up to €3 billion in Egyptian solar projects. The company will reportedly seek to raise an initial €1.2 billion in foreign investment and loans to build two solar parks in Egypt with a total capacity of 800 MW. Thereafter, the company reportedly plans to build a further 2 GW of solar in the country.

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