The Arab Petroleum Investments Corporation (APICORP), a multilateral development financing institution, announced that it would provide a $50 million (~₹3.6 billion) revolving construction facility to Yellow Door Energy Limited. A revolving loan facility is a form of a credit issued by a financial institution that allows the borrower to draw or withdraw, repay, and withdraw again.
UAE-based Yellow Door Energy currently has nearly 110 MW of solar assets operating and under construction in the UAE, Jordan, and Pakistan. The company has also expanded its base in Saudi Arabia, Bahrain, and Oman.
According to the announcement, the company will use the investment to finance solar projects in Jordan, where Yellow Door Energy is currently operating and developing 79 MW of solar projects across the country.
In 2019, APICORP and a consortium of international and regional banks invested $65 million (~₹4.7 billion) in Yellow Door Energy to help the company scale up its operations in the field of solar energy and efficiency solutions in emerging markets.
Speaking on the development, Ahmed Ali Attiga, CEO of APICORP, said, “For years, APICORP has been a trusted financial partner in the region’s energy sector, and we are delighted to extend further support to Yellow Door Energy as it scales up its solar operations in into new markets. APICORP is also one of Yellow Door Energy’s shareholders, and the revolving construction facility demonstrates our commitment to accelerate the sustainable energy transition in the region. APICORP’s financing portfolio is now over 15% green, and we are looking to continue to increase this as we move towards our strategic priorities for the energy transition.”
Over the last few years, APICORP has significantly increased its investments in sustainable and green technologies, accounting for 15% of its current financing portfolio. Recently, the financial institution also provided a $40 million (~₹2.9 billion) loan to Saudi Arabia’s first independent sewage treatment plant to foster the growth of cost-effective technologies.
In July this year, APICORP announced that it would provide a $50 million (~₹3.7 billion) credit facility to SirajPower, a UAE-based distributed solar developer, to expand its portfolio in the Middle East. APICORP had said that the transaction was the largest lease-funding for distributed solar energy in the Gulf Cooperation Council.
Earlier, it signed two agreements with Yellow Door Energy to install a rooftop solar system at its headquarters in Dammam and retrofit the building with energy-efficient technologies. According to the company’s statement, the new fittings were likely to cut APICORP’s carbon emissions by 2,000 tons and generate up to 718 MWh of clean energy and reduce energy consumption by 35%.
Previously, Mercom reported that Yellow Door Energy had raised $65 million (~₹4.8 billion) in a Series A financing round to scale its investments in solar energy and energy efficiency solutions in the Middle East and Africa.
Rakesh is a staff reporter at Mercom India. Prior to joining Mercom, he worked in many roles as a business correspondent, assistant editor, senior content writer, and sub-editor with bcfocus.com, CIOReview/Silicon India, Verbinden Communication, and Bangalore Bias. Rakesh holds a Bachelor’s degree in English from Indira Gandhi National Open University (IGNOU). More articles from Rakesh Ranjan.