IFC commits US$636m to Egypt’s solar energy park

News | 28 July 2017

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Egypt has secured US$636m from the IFC for its ‘feed-in tarriff’ programme to construct the largest solar energy park in the world. 

The IFC investment (approved by its board on 20 July and announced on 26 July) will go towards the US$730m project in Benban, which forms part of a larger grid of solar parks in the Aswan region.

Egypt secured a US$500m loan from the EBRD in June for another part of the project – the country estimates it will receive over US$2bn in direct foreign investment towards its renewable energy projects.

“This landmark investment demonstrates that when you have the right reform policies and a government willing to allow greater involvement by the private sector, you can attract investors in every sector, including infrastructure,” said Mouayed Makhlouf, IFC director for the Middle East and North Africa.

“Investments like these are the nucleus for economic growth, which is needed in Egypt.”

In a separate move, the IFC launched its first green Kauri bond in New Zealand on 27 July, with a value of US$100m.

The development institution said proceeds from the green bond would be used to “finance private sector investments addressing climate change in emerging markets.”

Monish Mahurkar, IFC director for treasury market operations said, “This issuance demonstrates the continued and expanding role of capital markets in mobilising international savings to help close the climate finance gap. As of July 2017, IFC has issued approximately US$6bn in green bonds, including two benchmark US$1bn issuances, the largest in the market at that time.”

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