Finnfund to invest with an IFC-led consortium to support the world’s largest solar park in Egypt

Finnfund, a Finnish development finance company, participates in financing the construction of 13 solar power plants in southern Egypt, near the city of Aswan. The plants will be part of the larger Benban Solar Park, which, once complete, will be the largest solar installation in the world.

Finnfund’s investment amounts to a total of USD 20 million which is allocated to three solar power projects in the form of senior debt. Each of the solar power plants will have a capacity of 50 megawatts.

The debt package, arranged by IFC, a member of the World Bank Group, is worth USD 653 million in total. The project is the largest private sector financing package for a solar photovoltaic facility in the Middle East and North Africa.

These 13 power plants will have a capacity of up to 752 megawatts, supplying Egypt with clean, renewable energy and contributing to energy security in the region. The initiative is expected to provide cost-effective and eco-friendly power to over 350,000 residential customers and generate up to 6,000 jobs during construction.

“Finnfund is keen to finance the building of world’s largest solar park. Together with our partners, we are able to reduce reliance on fossil fuels, and support this project which will hopefully become a forerunner in the whole region,” says Jaakko Kangasniemi, CEO of Finnfund.

Clean energy is one of Finnfund’s key sectors. Finnfund contributes to Finland’s climate funding; for instance, in 2016, Finnfund’s disbursements to 50 climate projects in its portfolio amounted to a total of EUR 46.2 million. A part of this, EUR 7.6 million of equity investment disbursements, was classified as Finland’s official climate funding. These include both projects aiming to mitigate climate change and support adaptation, for instance, in the sectors of renewable energy and sustainable forestry.

For more information:
Jaakko Kangasniemi, Managing Director, jaakko.kangasniemi(a)finnfund.fi, tel. +358 40 577 7676
Kirsi Pere, Communications Manager, kirsi.pere(a)finnfund.fi, tel. +358 40 620 9767
Eero Pekkanen, Investment Manager, eero.pekkanen(a)finnfund.fi, tel. + 358 40 158 92 00

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