Yellow Door Energy to develop over $1bn in sustainable energy projects following $400mn equity raise

The new sustainable projects will be funded through a combination of equity and debt securities, the firm says

Sustainable energy firm Yellow Door Energy says it has successfully closed a $400mn equity raise, which will enable it to continue developing sustainable energy projects in the Middle East, Africa and beyond.

The investment includes a purchase of current shares, enabling the company’s initial investors to exit. The funding is substantially provided by YDE’s newest and now controlling shareholder, Actis, with existing shareholders International Finance Corporation (IFC), Mitsui & Co (Mitsui) and APICORP also increasing their equity commitments, the firm explained.

With the closure of this transaction, YDE’s business plan is said to be fully funded. The management team is now focused on executing sustainable energy solutions over the next five years, with a portfolio value expected to exceed $1bn, which will be funded through a combination of equity and debt securities, it elaborated.

In December 2020, the firm said it had won $41mn worth of new projects in the region in 2020 and, in May 2021, it said it won the solar contract for The Box Self Storage facility.

“This substantial investment will enable Yellow Door Energy to rapidly expand into new countries and deploy over $1bn in projects across the region. We wholeheartedly welcome Actis as our majority shareholder and look forward to a fruitful collaboration. We would also like to express our gratitude to our existing shareholders – IFC, Mitsui and APICORP – for their continued investment and support for our business model of providing affordable, reliable and sustainable energy to visionary companies in the MEA region and beyond,” said Jeremy Crane, CEO and Founder of Yellow Door Energy.

With operations in the UAE, Jordan, Pakistan, Saudi Arabia, Bahrain and South Africa, Yellow Door Energy is said to have one of the largest commercial & industrial project portfolios in the region, with 106MW in operation and 104MW awarded and under construction. The company says that it has key existing relationships with a large customer base of over 50 companies including multi-national businesses such as Nestlé, Majid Al Futtaim, DHL, Mondelēz and Unilever.

Nalin Nayyar, CFO of Yellow Door Energy added, “Our shareholders understand the importance of patient capital when investing in sustainable long-term infrastructure projects. With over $400mn in equity expected, Yellow Door Energy is fully funded and well positioned for the next phase of the company’s growth. We look forward to leveraging our shareholders’ expertise and benefiting from their continued synergies to add value to our business and customers.”

In June 2021, Majid Al Futtaim and YDE signed an agreement to build Bahrain’s largest private solar plant and, in November 2021, YDE said that ETG had awarded it a contract for the development of a solar project.

The company said its goal remains to be the sustainable energy partner of choice for leading businesses, helping them reduce costs and lower carbon emissions. This directly supports Net Zero emission targets set by countries and companies worldwide to mitigate the impacts of climate change, it pointed out.

Lucy Heintz, Partner and Head of Energy Infrastructure at Actis conclude, “We’re excited about the opportunity our partnership with Yellow Door Energy presents to contribute to the MEA region’s transition away from fossil fuels by deploying new solar PV technology. We see a clear opportunity to help Yellow Door Energy continue its growth journey and to build the region’s distributed solar sustainability leader.”

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