The Arab African International Bank (AAIB) signed a new long-term loan agreement worth EGP 200m with Enara Group’s subsidiary Libra Capital, on Tuesday, to finance the latter’s renewable energy projects.
The loan, which will cover a period of up to 10 years, will help the Enara Group subsidiary finance its projects in Egypt, in the field of developing, constructing, and operating solar power stations.
It comes in view of the banking sector’s main role in achieving sustainable development goals, improving the efficient use of natural resources, and encouraging institutions and individuals to adopt sustainable practices. It also comes in light of banks acting as the financing arm for all sectors that affect the environment and society.
To complement its role in achieving sustainable development goals, the AAIB has entered into partnership with Libra Capital, which provides integrated solutions for the commercial and industrial sectors.
This covers the design, financing, installation, and operation of solar energy stations as a more economically and environmentally effective alternative compared to traditional non-renewable energy.
The deal is a prominent facility granted to companies operating in the renewable energy sector. It aims to finance up to 70% of power purchase agreements between the special purpose companies affiliated with Libra Capital and Enara Group.
The deal was structured taking into consideration the challenges posed by environmental regulations. It is worth noting that the AAIB had a pioneering role in the financing, with the European Bank for Reconstruction and Development (EBRD) and Green Economy Financing Facility in Egypt (GEFF Egypt) providing financing and technical evaluation for the financial institutions involved in this deal.
Sherif Elwi, Managing Director and Vice Chairperson of the AAIB, said, “We strongly believe in the great potential of renewable solar energy that Libra Capital is working to provide, in addition to the significant growth in the Egyptian market’s awareness of renewable energy during the past two years, which was reflected in the desire of the Arab African International Bank to participate in financing projects in that sector.”
Sherif Magdy El-Gabaly, Founder and Chairperson of Enara Group, said, “We would like to thank the AAIB, the EBRD, and GEFF Egypt for granting us these exceptional facilities to support the realisation of our practical plans with strategic dimensions in terms of sustainable industrial growth in Egypt.”
He added, “Enara Group, through these projects, contributes to Egypt’s Vision 2030 to provide 42% of the total energy from renewable sources, and I believe that our commitment to green and sustainable growth is the main driver behind all our activities in Egypt and Africa.”
Amani Samir, Head of the Corporate and Institutional Financing Sector at the AAIB, praised the importance of the renewable energy sector, saying, “The bank pays great attention to this sector as renewable energy is the future. It is mainly for our children in the coming years.”