- Alcazar Energy has raised $490 million for its new investment vehicle AEP-II
- It targets to invest the proceeds on developing over 1.6 GW in emerging markets
- The focus will be on utility-scale renewable energy projects and mobilizing $2 billion in FDI
Alcazar Energy of Luxembourg has achieved a final close of $490 million for its Alcazar Energy Partners II SLP (SCSp) (AEP-II) investment vehicle to be spent on utility-scale renewable energy projects in select emerging markets. The fund targets to develop over 1.6 GW of clean energy facilities with the proceeds.
It was initially targeting $500 million for the AEP-II with a hard cap of $650 million to develop 2 GW of clean energy.
For the AEP-II investment vehicle, the sustainable infrastructure fund counts a strong group of private and public investors with 80% having AA or AAA ratings. Since its initial closing in November 2022, it has attracted 8 additional top-tier investors such as the US International Development Finance Corporation (DFC).
Investors to the vehicle are spread across North America, Europe, the Middle East and Asia. Through AEP-II, Alcazar targets to mobilize $2 billion of foreign direct investment (FDI), including project finance in emerging markets.
It has already acquired project rights for 2 wind farms in the Western Balkans with a combined 456 MW capacity.
“We are excited to announce the final close of AEP-II, welcoming blue-chip public and private infrastructure investors,” said Co-Founder and Managing Partner of Alcazar Energy Daniel Calderon. “With this fund, we are well positioned to continue investing in essential renewable energy projects that advance the energy transition in places that are historically underserved by the traditional investment community.”
With its maiden investment vehicle AEP-I, Alcazar says it created the largest independent renewable energy project portfolio in the Middle East & North Africa (MENA) region. This included 5 solar PV and 2 onshore wind projects in Jordan and Egypt with a total generation capacity of 411 MW.
In H2/2021, it auctioned the AEP-I portfolio to China Three Gorges South Asia Investment Ltd whose shareholders include the International Finance Corporation (IFC) and the Silk Road Fund (see China’s Three Gorges Acquires Dubai’s RE Developer).
