Egypt-based investment bank EFG Hermes has made its first investment beyond the borders of the Middle East and Africa with the acquisition of a 49 per cent stake in EDPR France.
The $208 million investment will give the bank a stake in EDPR France's portfolio of 33 operational wind farms with a combined capacity of 334 MW. The transaction also marks the launch of a new direct investment strategy by the bank and a growing interest in renewable energy.
The deal is EFG Hermes' second in the renewable energy sector in under 12 months, following an earlier commitment via the InfraMed fund to establish the Arab world's first utility-scale wind farm in Jordan.
Under the terms of the agreement, EFG Hermes's private equity arm will manage the investment vehicle, while EDPR France will retain operational control over the acquired assets. EDPR France has a 15-year feed-in tariff arrangement with Électricité Réseau Distribution France for the energy generated by the wind farms.
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).
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