The Arab Petroleum Investments Corporation (APICORP); a multilateral development financial institution, announced a $50mn credit facility for SirajPower; the UAE's leading distributed solar energy provider, to expand its portfolio of distributed solar energy projects across the Middle East.
The transaction also represents the largest lease-funding platform for distributed solar energy in the GCC.
This is a continued realization of APICORP vision and strategy to focus on renewables. Besides, supporting the region's transition towards a sustainable energy future; committing around $450mn of capital towards renewable projects in the past four years.
The transaction will also enable SirajPower to deploy its rooftop solar PV turnkey solutions across various industries; allowing the private sector to save on their utility bills. While simultaneously offsetting their carbon footprint; through an innovative structure to finance an entire portfolio of distributed solar projects on a long-term basis.
CEO of APICORP Dr. Ahmed Attiga, said: "Through innovative financing solutions to our partners and direct investments, APICORP plays a vital role in bringing world-class energy technologies to the region. We have witnessed a strong appetite for solar projects as a sustainable source of renewable energy by both the government and the private sector in the UAE and the MENA region in general.
SirajPower's business model is promising of more innovations to come in the energy efficiency sector and we look forward to being part of its future success. As the trusted financial partner to the energy sector, the partnership with SirajPower demonstrates APICORP's commitment to being a leading catalyst for sustainable development in the region."
Mohammed Abdulghaffar Hussain, chairman of SirajPower and Creek Capital, said: "We established SirajPower to act as a platform for renewable energy investments and provide stable and attractive long-term returns whilst simultaneously supporting the UAE and the wider region's sustainable development goals.
The market is full of potential. We are also gearing up to the next phase of a promising and rapid development across the wider Middle East region. Our partnership with APICORP is a testament not only to the bank's innovative approach to financing; but also to their keen desire to play a key role in the region's burgeoning green economy."
According to APICORP's recently issued MENA Energy Investment Outlook 2020-2024; the MENA region will need to invest around $144bn in the power sector to meet growing energy needs.
