EFG Hermes, Egypt’s largest investment bank, has announced today that it has taken a 49% stake in EDPR France, a wind energy company with a total of 334 MW of installed capacity among 33 operational wind farms.
The deal cost the private equity branch of EFG Hermes $208 million and is part of their strategy to offer partners and investors “compelling global opportunities”. It also marks the company’s second investment in wind energy over the last year, the first being a utility-scale wind farm located in Jordan. EFG Hermes is careful to invest in low-risk high-returns opportunities, and this deal is no exception; EDRP has secured a 15-year FiT arrangement with the government owned Électricité Réseau Distribution France; the company offers great stability and strong dividends.
Head of Private Equity at EFG Hermes, Karim Moussa, said:
“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,”
“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.”
“Seeding investments and raising substantial third-party funding is a key pillar of our model going forward in private equity,”
“We will also continue building our outbound investment practice and actively screen for opportunities to match deep pools of capital in the MENA region with attractive yielding opportunities in Europe and beyond, particularly in the infrastructure and renewable energy verticals.”
According to their release, EFG Hermes ‘was advised on the EDPR France buyout by Global Capital Finance (corporate finance), Shearman & Sterling and Watson, Farley & Williams (legal), Garrad Hassan and SGS (technical), Grant Thornton (tax and accounting) and Pöyry (energy market).’
Deals like this confirm that investments in wind energy are more profitable than ever.