EGYPT: KarmSolar in need of $61.5 million to provide solar energy to businesses

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EGYPT: KarmSolar in need of $61.5 million to provide solar energy to businesses©Estebran/Shutterstock

The Egyptian company KarmSolar is currently in talks with several Egyptian and international financial institutions to raise a billion Egyptian pounds ($61.5 million). The firm has the ambition to provide electricity to private companies from its solar off-grid systems.

KarmSolar continues to grow in Egypt. The Egyptian company is currently in talks with at least five development partners. Target: Collect up to 1 billion Egyptian pounds ($61.5 million). The funds will be used to install its photovoltaic solar off-grid systems to provide electricity to companies.

The International Finance Corporation (IFC) is one of the development partners with which KarmSolar is in full negotiation. This very active subsidiary of the World Bank in charge of corporate finance is involved in the production of electricity from renewable sources in Egypt. It also finances projects of several independent power producers (IPPs) in the Benban solar complex, or the growing number of wind projects in Ras Gharib, a windblown locality in the Red Sea Governorate in the Gulf of Suez.

Local partners?

KarmSolar is also negotiating with the European Bank for Reconstruction and Development (EBRD), another financial partner very active in the renewable energy sector in the Pharaohs’ country. The Egyptian company KarmSolar will not give any further details, including information on its potential future local financial partners. According to the Daily News Egypt colleagues, however, it could also find a financing agreement with Banque Misr, a bank based in Cairo that specialises in corporate financing. It has recently released 230 million Egyptian pounds ($14.15 million) to support several solar projects across this North African country.

KarmSolar’s ambitions

With funds obtained from its partners, KarmSolar builds solar power plants and the electricity produced by these plants is sold to companies. In February 2019, the company launched in 2011 signed an electricity sales contract with Cairo3A Poultry, a subsidiary of the Cairo 3A group, one of the country’s main conglomerates with interests in agriculture, transport, poultry production and grain trade.

The contract is worth $90 million. KarmSolar is expected to supply all the electricity for Cairo3A Poultry, a poultry farm, i.e. 100 MW from a solar power plant it will build in the Bahariya oasis near Cairo.

By 2018, KarmSolar had a portfolio of committed projects with a total capacity of 65 MWp through its subsidiary KarmPower. This portfolio includes a 23.5 MW project for the Dakahlia group and a 20 MW power generation and distribution project for El-Badr for Investment and Commercial Spaces (Arkan Plaza, a shopping centre).

To carry out these projects, the company raised a further 500 million Egyptian pounds ($30.77 million). These funds were provided by Attijari Finances, a Moroccan investment bank, a subsidiary of the Attijariwafa bank group.

Jean Marie Takouleu

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