The startup just signed an agreement with Attijari Finances to act as its global advisor and coordinator for its equity fundraising process.
KarmSolar, Egypt’s leading solar energy solutions startup, has signed an agreement with Moroccan investment bank Attijari Finances to act as the startup's global advisor and coordinator for its equity fundraising process. "In view of the important funding requirements of the renewable energy sector in Africa and the Middle East, Attijari Finances’ role is to align the interests of project sponsors and relevant investors to develop attractive investment opportunities in both regions," says Idriss Berrada, Attijari Finances' General Manager. During the first phase of the agreement, KarmSolar aims to raise approximately EGP 500 million of equity to operate the first batch of its solar powered stations.
“This move is key in our plan to ramp up our fundraising process," says KarmSolar's Investment Manager Yasmine Nassar. "The main motivation behind choosing Attijari Finances is their deep understanding of the power markets and renewable energy financing given their experience in Morocco, we are looking forward for finalising this round and the future ones with Attijari Finances.”
This comes as part of the augmentation of KarmSolar’s fundraising mechanism as it races to deliver its pipeline of private solar Power Purchase agreements (PPAs). KarmSolar currently holds a pipeline of committed projects with a total capacity of 65 megawatts through its subsidiary KarmPower that will be financed through the first phase of the fundraising. These projects include a 23.5 megawatts project for Dakahlia Group, and a 20 MW power generation and distribution project for El-Badr for Investment and Commercial Spaces (Arkan Plaza). Once operational, these stations will join KarmPower’s existing portfolio of clients, which includes Juhayna, Fridal, EFG Hermes and Orion Food Industries.
"In less than a year, KarmSolar’s pipeline of committed projects grew in the private PPA market we created from 0.6 megawatt to 65 megawatt," says KarmSolar's CEO Ahmed Bahrain. "Since then, we’ve already delivered Egypt’s first two grid-connected PPAs - financed by Attijariwafa - and before the end of this year we will have delivered a third project and reached midway in constructing the fourth," he adds concluding that this rapid growth along with KarmSolar's future expansion plans entail moving one step ahead of the market to create a sustainable mechanism for financing private solar PPAs in Egypt.
Main Image courtesy of KarmSolar.
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