The Arab Petroleum Investments Corporation (APICORP), a multilateral development financial institution, has signed a strategic five-year Murabaha financing facility worth $75 million with Alfanar Company, a developer and engineering procurement construction (EPC) company for clean energy and manufacturer of electrical products.

Baker & Mckenzie, Bahrain acted as APICORP’s legal counsel on the financing and Hogan Lovells, Dubai advised Alfanar. The fund will support Alfanar’s renewables energy projects, including a wind project in Spain.

Jamal Wadi, Chief Executive Officer, Alfanar Global Development, said, “With an existing portfolio exceeding 1.5 GW of renewable development projects around the globe, Alfanar is committed to double its portfolio in the next few years further. The signing of the Murabaha agreement with APICORP brings us a step closer to realizing our commitment. This partnership with APICORP comes at a time when Alfanar is also diversifying its portfolio and venturing into new markets.”

Nicolas Thevenot, APICORP’s Managing Director, Head of Corporate Finance, commented: “APICORP is committed to encouraging Saudi companies in their pursuit of opportunities beyond their home market. In this particular case, we are happy to support Alfanar towards their renewable energy projects globally. This is in line with APICORP’s focus to support global sustainability through projects driven by environmentally conscious and renewable principles.”

Alfanar is aiming to tap into the growing demand for renewable energy in various countries around the globe. The company aims to deploy 3 GW by 2022 to grow its portfolio to 4-5 GW by 2025.

In March 2019, Electricity Generation Company of Bangladesh (ECGB) and Alfanar signed an agreement for the construction of 100 MW of solar power projects.

In September 2018, Alfanar won bid to develop 300 MW of interstate transmission system connected wind projects tendered by Solar Energy Corporation of India.