Sunday March 26th, 2023
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Egypt's EFG Hermes to Lead $725M Investment in Spain’s Ignis Energía

Through the Egyptian firm's Vortex Energy Fund, one of Spain's most eclectic renewable energy portfolio's is poised for global expansion.

Startup Scene

Egyptian investment company, EFG Hermes, has pledged to invest $725 million in Spanish renewable energy specialist, Ignis Energía, through the company’s private equity arm’s Vortex Energy Fund as a series of capital injections, which will be deployed over the coming few years subject to certain conditions.

While it has yet to be officially confirmed that the investment will result in EFG Hermes gaining a stake in the company, Reuters has reported that the figure represents 49% of the company’s valuation, suggesting that deal will give EFG Hermes a minority stake.

Founded in 2015, Ignis Energía is active in development, generation, energy services and operation & maintenance, giving it one of the largest renewable energy development portfolios in Spain with more than 10,000MW to its name. As of 2020, it was managing sites of 2.9 GW in total capacity in 2020, turning over $154 million and employing 200 people. It also struck a deal to develop a 3.3GW pipeline of projects with France's TotalEnergies.

The investment has come at an opportune time, as it looks to expand its global footprint. "In Vortex Energy, we have identified a great partner that is aligned with our vision and committed to maximizing Ignis' potential,” founder and CEO of Ignis, Antonio Sieira, said. “The Ignis management team looks forward to working with Vortex Energy in this next stage of growth and transformation.”

CEO of Vortex Energy, Karim Moussa, echoed these sentiments, praising the Ignis team and their ambition. “Ignis has an extraordinary team, with a visionary plan to create an international renewable IPP in the coming years,” he said. “Vortex Energy will support Ignis to achieve its objectives and work to deliver its significant value creation potential.”