- MIGA to support the development of solar plants in Egypt.
- Virtuo Finance will manage the transaction.
The Multilateral Investment Guarantee Agency (MIGA) is set to provide $98.3 million to refinance six solar photovoltaic plants in Egypt. Scatec and Africa50 own the plants on the Benban complex.
Virtuo Finance, which issues green bonds, will manage the finance. The European Bank supports the transaction for Reconstruction and Development (EBRD), which lent part of the funds needed to construct the renewable energy plants. According to Miga, refinancing the solar plants will reduce financial costs, improve overall financial viability, and generate cost savings that will be shared with the Egyptian government.
“This innovative climate-certified bond, supported by MIGA and the EBRD, catalyses opportunities for institutional investors from emerging markets and developing economies,” says Junaid Ahmad, MIGA’s vice president of operations. The bond was divided into two tranches. The first tranche of $250 million is split between the EBRD and other development finance institutions. The second tranche of $84.5 million was distributed to international private institutional investors.