EFG-Hermes Acquires 49% Stake in EDPR France in $208 million Deal

Big 5

Egypt’s leading investment bank EFG-Hermes Holding announced Wednesday that its private equity arm has signed a $208 million deal to acquire a 49% equity shareholding and outstanding shareholders loans in wind energy company EDPR France.
According to the company’s release, the transaction is part of its strategy of broadening its traditional role as a catalyst for institutional capital into MENA markets by helping its partners and investors tap compelling global opportunities.
EDPR France has a portfolio of 33 operational wind farms with a combined gross capacity of 334 MW. The company is a subsidiary of EDP Renewables (EDPR), one of the top four global renewable energy companies that develops, constructs and operates renewable energy assets with over 8.6 GW of installed capacity across three continents.
“Our first investment beyond the borders of the Middle East and Africa is a natural outgrowth of our emphasis on infrastructure private equity and, moreover, marks the launch of our direct investment strategy,” said EFG Hermes Co-Chief Executive Officer Karim Awad.
“Our interest in infrastructure investing generally — and in renewable energy in particular — reflects our aim of being catalysts for sustainable development while simultaneously generating attractive returns for our shareholders and co-investors alike.”
The transaction underscores EFG Hermes’ ability to originate, raise equity and debt and execute deals on an international scale in a highly competitive industry.
This will be the firm’s second investment in the generation of green energy in 12 months, coming after an earlier commitment via the InfraMed fund to the establishment of the Arab world’s first utility-scale wind farm in Jordan.
Joâo Manso Neto, CEO of EDP Renewables, stated, “I am pleased to announce this new partnership and the breakthrough agreement with EFG Hermes, which is part of the asset rotation plan that the company has been implementing in order to deliver its growth strategy.” “We are delighted to enter into a partnership with such a reputable global player in renewables. EDPR has an outstanding track record and is widely known in the industry for its operational excellence,” said Karim Moussa, Head of Private Equity at EFG Hermes.
“We’ve recently seen a strong surge in investor appetite for cash-yielding renewable assets, mainly driven by the prevailing low interest rate environment. This deal underlines our capability to transact swiftly and allocate capital from MENA to an attractive global asset class.” Approximately half of the $ 208 million buyout will be funded via an acquisition finance facility secured from leading European banks.