DUBAI: IFC, a member of the World Bank Group, and the IFC Middle East and North Africa (MENA) Fund, a fund managed by IFC Asset Management Company, LLC (AMC), are investing $19 million in equity in Yellow Door Energy. The investment will support the deployment of lease-to-own rooftop and ground-mounted solar-power and energy-efficiency solutions to commercial and industrial customers in Jordan, UAE, and beyond.
The investment is part of a $65 million financing package that Yellow Door Energy is raising from a group of investors. IFC will provide $5 million from its own account, and the IFC MENA Fund will invest $14 million. The investment will help this leading solar-power developer expand operations into Pakistan, growing its presence across the Middle East beyond current markets of UAE and Jordan.
Jeremy Crane, CEO and Co-Founder of Yellow Door Energy, commented: "The funding validates our company's vision of powering emerging economies reliably, efficiently, and sustainably. It enables us to scale our energy platform from the Middle East to Africa and Asia. We aim to build 300 megawatts of solar in the next two years, benefitting hundreds of businesses and the broader economy. We are excited that prestigious global investors believe in our company's credibility, commitment, and customer-centric offerings.”
Many countries—including Jordan, Lebanon, and Pakistan—are heavily reliant on expensive and pollution-causing thermal generation for their power. Yellow Door Energy uses an innovative leasing model to help commercial and industrial businesses build and maintain ground mounted and roof-top solar arrays to lessen their reliance on local power grids. IFC and AMC's investment will help local businesses tap into a clean, reliable supply of energy while demonstrating the potential of small-scale solar systems in Pakistan and other countries suffering from power shortages.
“Our investment in Yellow Door Energy will provide much-needed clean power across a region in need of sustainable, affordable power,” said Marcos Brujis, Chief Executive Officer, IFC Asset Management Company. “With this investment, we see an opportunity to create positive impact and good financial returns for our investors.”
Erik Becker, IFC Manager of Infrastructure and Natural Resources in the Middle East and North Africa, said: “Lack of economical power supply is hurting businesses large and small, stifling economic growth, and contributing to unemployment across the region. Yellow Door Energy's business model will help companies reduce energy costs and lower their carbon emissions—a strategic objective of IFC in the region.”
Other investors include Mitsui & Co., Equinor ASA, Arab Petroleum Investments Corporation (Apicorp), and Adenium Energy Capital, the founding investor of Yellow Door Energy.
SOURCE International Finance Corporation (IFC)
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