credit: Elsewedy Electric
Egypt-based Elsewedy Electric announced that it has acquired a portfolio of renewable energy assets in Greece for a sum of €55 million ($61.8 million).
As per the deal, the company entered into a Share Purchase Agreement with R.F. Energy - a subsidiary of F.G Europe - to acquire 100% of the share capital of three wind and one hydro-electric energy companies in Greece.
These four companies have an aggregate capacity to generate power worth 63.6 MW through its three wind parks. These units will generate energy to power 34,000 homes with equivalent carbon dioxide (CO2) footprint of 102,000 tons.
The deal will be financed through a ring-fenced project finance facility from National Bank of Greece (NBG) covering up 75% of the value while the remaining will be paid in equity.
The acquisition comes as the renewable energy market becomes promising to investors. Renewable energy market was valued at $928.0 billion globally in 2017, and is expected to reach $1.5 trillion by 2025, registering a CAGR of 6.1% from 2018 to 2025, according to Allied Market Research.
This investment represents Elsewedy Electric ‘s second Independent Power Producer (IPP) Project in MENA, following the Benban Power Plant in Egypt. Also, it makes Elsewedy one of the top renewable energy operators in Greece.
Elsewedy Electric is ranked 66th in Forbes Middle East’s Top 100 Listed Companies in the Middle East 2019.
In 2018, Elsewedy Electric and Arab Contractors signed a $2.9 billion contract with the government of Tanzania to build a new dam and hydropower plant.
Furthermore, the company said that it has signed an agreement with the African Bank for Import and Export to fund its future projects in Africa worth $500 million.