Alcazar Energy Partners II fund reaches $336.6m first close
Alcazar Energy Partners II (AEP-II), a Luxembourg domiciled infrastructure fund focused on utility-scale renewable energy projects in emerging markets, has achieved a first close of $336.6 million.
AEP-II’s investors include the European Bank for Reconstruction and Development; the European Investment Bank; EMCAF, a fund managed by AllianzGI and advised by EIB; the International Finance Corporation; the Asian Infrastructure Investment Bank; German development institution DEG; Proparco; and FMO.
AEP-II has already signed its first memorandum of understanding (MoU) with the Egyptian Government to invest in a green hydrogen-based ammonia facility with 230,000 tonnes/year capacity powered by a dedicated 1GW renewable energy plant. A number of European and Asian investment grade off-takers have expressed a strong interest in providing an off-take agreement for the project.
Since 2014, Alcazar Energy’s first vehicle, Alcazar Energy Partners (AEP-I), deployed $240 million of equity and mobilised total foreign direct investment in excess of $700 million into seven solar and wind farms in Egypt and Jordan, which created over 4,200 construction jobs and generated electricity able to power over 275,000 households.
By 2018, AEP-I developed the largest private renewable energy portfolio in the MENA region at the time, demonstrating that renewable energy in emerging markets can produce long-term stable returns sought by institutional investors. The regulatory environments that countries such as Egypt, Jordan have developed over recent years enables disciplined managers to mobilise institutional financing at larger scale.
Daniel Calderon, co-founder and managing partner of Alcazar Energy commented, “The successful first close of AEP-II is a tribute to the disciplined and responsible work of our Alcazar team, who originated, developed, and exited AEP-I’s portfolios, creating value for investors and, most importantly, for the countries and communities where AEP-I invested.”