French energy giant Électricité de France (EDF) intends to invest $25m in KarmSolar before the end of this year, to raise the latter’s capital.
This comes within the EDF’s plan for expanding investment in the Egyptian market, a source close of the deal told Daily News Egypt.
The source revealed that negotiations with KarmSolar have reached very advanced stages and are expected to be officially declared within days, however, the source did not disclose any further details.
Intensive meetings were held between the two companies’ officials throughout the last week to complete the deal if agreed upon, KarmSolar would likely to put a percentage of the company for an IPO.
The sources pointed out that KarmSolar is one of the successful companies and proved its worth in the Egyptian market, and has concluded many memorandums of understanding and agreements and has agreements to establish solar power plants up to 165MW, including an agreement with Cairo Three A to sell 100MW of solar energy through a plant it intends to launch.
Last year, KarmSolar signed a partner-ship agreement with Attijari Finances in September to act as KarmSolar’s global advisor and coordinator for the company’s equity fundraising process. The partnership aims to raise EGP 500m as a first stage for the construction and operation of projects executed by the company.
The sources confirmed that this deal paves the way for the French company to increase its investments in Egypt and reinforces the company’s presence in the market.