Spain's Ignis secures EUR 625m backing from Egypt's EFG Hermes

Spanish renewables developer and energy trader Ignis Energy Holdings has agreed to sell an unspecified stake to Egyptian financial services company EFG Hermes Holding SAE in exchange for a total investment of over EUR 625 million (USD 727.3m), which will further the development of its 20-GW-plus platform.

The deal will enable Ignis to own and operate a larger share of its projects in development, whilst pursuing a strategy of becoming a fully integrated renewable independent power producer (IPP) in Spain and abroad.

The capital injections will be made incrementally, subject to conditions. The funds will be channelled through renewable energy platform Vortex Energy, which is sponsored by EFG's private equity arm and is managed by Luxembourg-based Beaufort Investments. Vortex will invest through its newly-launched fourth fund, alongside co-investors.

The deal requires regulatory approval in Spain.

Since its inception in 2015, Ignis has developed 14 GW of solar and wind projects in Spain, and another 8 GW in Europe, the Americas and the Asia-Pacific. In 2020, the company managed assets with a total capacity of 2.9 GW and booked revenue of EUR 130 million, its website shows.

Media rumours surfaced in late June that Ignis was working with Citigroup to identify a potential minority investor that would provide capital for the development of 3 GW of projects.

(EUR 1 = USD 1.164)

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