Egypt headquartered power company Elsewedy Electric has raised $150 million from the International Finance Corporation (IFC), First Abu Dhabi Bank and Europe Arab Bank to finance new solar energy facilities in Africa, and also support its expansion further.
The company plans to use the proceeds to develop or acquire solar independent power producer (IPP) projects through various infrastructure projects, and also enable it to maintain current manufacturing facilities.
"The loan will give Elsewedy Electric the flexibility to finance and invest in several new projects; and part of it will be allocated to refinance previous equity acquisitions to reshape the financing scheme with better financing structure. This will, in turn, enhance the payback period for the investments," stated the Egyptian company.
For the IFC, the financing is aimed at increasing access to renewable energy in various African nations. It is expected to support Elsewedy bring down its GHG emissions by over 60,000 tons annually through solar power plants and energy efficiency measures carried out by the company at existing facilities.
Recently, the World Bank Group member signed a collaboration agreement with Electricidade de Moçambique (EDM) to develop 4 small-scale solar PV plants and battery storage facilities with a combined capacity of 50 MW in another African nation of Mozambique.
The IFC will carry out a grid integration and financial assessment study basis which the EDM projects will move forward.