Cairo – Mubasher: Renewable energy investment company Vortex, which is run by Egyptian investment bank EFG Hermes, announced on Friday that it has purchased TerraForm Power’s UK solar portfolio for GPB 470 million ($581 million).
The portfolio previously owned by TerraForm Power involves a solar capacity of 365 megawatt (MW).
The new acquisition will boost Vortex's renewable energy generation capacity to 822 MW, bringing its total investments in the clean power industry in Europe to around $1.4 billion to date.
Commenting on the deal, EFG Hermes Group CEO Karim Awad stated: “This landmark acquisition caps a two-year period in which our private equity team has built Vortex from a newcomer into a platform managing 822 MW in net capacity across the United Kingdom, France, Spain, Belgium and Portugal, making it one of the largest renewable energy focused investment managers in Europe.”
He further added that the was transaction was an example of EFG's announced merchant banking strategy of "effectively utilizing our balance sheet to support our core businesses and enhance shareholder returns.”
According to the statement, the portfolio carries a project finance debt facility of approximately GBP 300 million.
Vortex said it was planning to refinance existing debt to help fund the purchase.
Asian utility company Tenaga Nasional Berhad has subscribed into Vortex in order to fund 50% of the equity share capital association with the purchase. EFG Hermes will underwrite the remaining 50%, according to a statement by Vortex.
