EBRD raises stake in Egyptian renewables developer Infinity

The European Bank for Reconstruction and Development (EBRD) will invest USD 41.5 million (EUR 39.8m) to lift its stake in Infinity Energy and thus support the Egyptian renewable energy developer in the partial acquisition of African peer Lekela Power.

EBRD did not provide details about its shareholding in Infinity in the press statement on Wednesday. Its investment commitment comes on top of its initial investment in the Egyptian company when it poured USD 60 million in its share issue.

At present, Cairo-based Infinity has a portfolio of 184 MW operating solar parks in Egypt and a pipeline of roughly 2 GW in the region.

With EBRD’s help, Infinity will be able to expand its business in the home market and overseas and advance its pipeline of development and acquisition projects. Some of its investment will fund the stake purchase in renewable energy independent power producer (IPP) Lekela, which has an operating portfolio of 1.1 GW.

Infinity will take part in the deal through Infinity Power Holding, its joint venture with the UAE’s Masdar. Following the transaction that was unveiled in July, Lekela will be owned by Infinity Group and Africa Finance Corporation (AFC).

(USD 1.0 = EUR 0.959)

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