To promote private-sector investments in clean energy in Jordan and the MENA region, DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH, invests in Catalyst MENA Clean Energy Fund L.P. (Catalyst). Catalyst makes investments in renewable energy infrastructure projects with a strategic focus on solar energy. In addition, the fund invests in mid-sized enterprises serving the renewable energy and energy efficiency sectors.
While focusing on Jordan, Catalyst may also invest in Egypt, Morocco and Tunisia. DEG´s commitment in the first closing amounts to the equivalent of EUR10mn, taking the first closing’s total commitments to approximately US$48mn. Other investors include GEEREF, a fund-of-funds advised by the European Investment Bank, as well as the European development finance institutions FMO from the Netherlands and Finnfund from Finland. The target size of the fund is up to US$100mn.
Jordan is among the major initial host countries for refugees from Syria. Private sector employment plays a key role in stability in Jordan at a time of regional tensions. By making investments in renewable energy infrastructure projects and mid-sized companies, Catalyst not only aims to improve energy supply, but also to foster employment growth and increase tax revenues.
"Catalyst Private Equity is a longstanding and locally rooted energy fund manager. As an anchor investor in Catalyst MENA Clean Energy Fund, DEG will help mobilize commitments from additional investors as well as support the development of renewable energy in Jordan and the region," said Dr. Tilman Kruse, Director Corporates & Funds Europe/Middle East/Central Asia at DEG.
The Catalyst MENA Clean Energy Fund is the second fund launched by Catalyst Private Equity, which has specialized in energy investments since 2006. The new fund is expected to invest in more than 600 MW of energy from renewable energy resources, meeting growing local and regional demand. The fund’s investments will also diversify the energy mix in Jordan and the target countries by reducing dependence on oil and gas for electricity generation. Over 70 MW of solar PV projects have already been contracted by Catalyst in Jordan alone.
As one of the major European development finance institutions, DEG finances businesses directly, in addition to providing banks and funds with long-term capital. These investments aim to improve the offer of long-term loans or equity for small and mid-sized enterprises, which are essential for development of the local economy.
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