Alcazar Energy Partners, an asset manager focused on renewable energy, said it raised nearly $337mn from investors including the European Investment Bank to fund its growth in new markets.
The amount was raised for a Luxembourg-based fund named Alcazar Energy Partners II. It has a final target size of $500mn and a hard cap of $650mn, the company said.
Alcazar said eight investors participated in the funding, also including the European Bank for Reconstruction and Development and the International Finance Corporation, the private-sector lending arm of the World Bank.
The transaction will “enable the development and construction of over 2 gigawatts of clean energy infrastructure across selected emerging markets,” said Alcazar.
“AEP-II is privileged to have the confidence of an outstanding group of public and private institutions to invest and develop in renewable energy projects, mobilising more than $2 billion of foreign direct investment from OECD economies to build sustainable infrastructure where it is needed most,” said Daniel Calderon, managing partner of Alcazar Energy.
The fund has signed an initial agreement with Egypt to invest in a green hydrogen-based ammonia facility with 230,000 tonnes per year capacity.
“A number of European and Asian investment grade off-takers have expressed a strong interest in providing an off-take agreement for the project,” said the company.
AEP-II has already signed its first Memorandum of Understanding (MoU) with the Egyptian Government to invest in a green hydrogen-based ammonia facility with 230,000 tonnes/year capacity powered by a dedicated 1GW renewable energy plant.
A number of European and Asian investment grade off-takers have expressed a strong interest in providing an off-take agreement for the project.
Since 2014, Alcazar’s first funding vehicle has invested $240m of equity in solar and wind farms in Egypt and Jordan.
By 2018, AEP-I developed the largest private renewable energy portfolio in the MENA region at the time, demonstrating that renewable energy in emerging markets can produce long-term stable returns sought by institutional investors.
Alcazar was bought last year by a group led by Chinese state power firm China Three Gorges Corp.