The European Bank for Reconstruction and Development (EBRD) said on Thursday that it is investing up to $100 million in Scatec's $334.5 million green bond issuance.

The green bond is backed by six solar power plants owned by Scatec in Egypt's Benban solar park.

EBRD said in a statement that is also providing a $30 million Credit Enhancement Facility (CEF) for participating institutional investors.

In a separate statement, Scatec had noted that the credit enhancement structure would establish an efficient precedent for future transactions, including the prospect of an investment grade credit rating for the green bond.

Certified under the Climate Bonds Standard, the Scatec issuance is the first private green project bond issuance in Egypt and the southern and eastern Mediterranean region, according to EBRD's statement.

Nandita Parshad, EBRD Managing Director, Sustainable Infrastructure Group, said: “We are delighted to continue our support of Egypt’s renewable energy sector and to mobilise new private and institutional capital through this highly innovative and timely instrument.”

(Writing by SA Kader; Editing by Anoop Menon)