عربــى

EGX 30 13,776.85 0.82%



EFG Hermes, KarmSolar Launch first solar energy lease finance solution

EFG Hermes, KarmSolar Launch first solar energy lease finance solution

Arab Finance: EFG Hermes Leasing (HRHO) , the leasing arm of leading Middle East and North Africa financial services corporation, EFG Hermes, has entered into a strategic partnership to offer lease finance solutions to solar energy projects in Egypt.

The collaboration with KarmSolar, Egypt’s largest private off-grid solar energy integrator, is the first of its kind in the industry and will provide sustainable solar energy solutions through the structuring of financing plans tailored to Egyptian businesses with demand for renewable energy.

The solution is particularly well-suited to the nation’s under-served agriculture sector, where it can play a transformative role in growing Egypt’s base of arable land outside the Nile Delta region, easing pressure on Nile water resources and eliminating the need for less environmentally friendly energy sources. Solar power is also ideally suited to more remote areas lacking ready access to the national electricity grids and for growers and businesses looking to reduce reliance on fossil fuels.

Also included in the program are rooftop solar panels for businesses and large corporations looking to add sustainable energy to their power mix or to add new capacity without reliance on the national grid.

“The unique economics of alternative energy creates challenges for businesses seeking alternative energy solutions as well as lenders looking to finance alternative energy projects,” explained Wael Ziada, Executive Chairman of EFG Hermes Finance. “The combination of KarmSolar’s expertise in solar energy solutions and EFG Hermes Leasing’s innovative approach to financing will create new opportunities for businesses across all industries while promoting eco-friendly, environmentally sustainable solutions with a positive social impact.”

Among other industries, the EFG Hermes Leasing-KarmSolar partnership will initially focus on meeting agricultural companies’ rapidly-growing demand for solar energy to power irrigation systems, potentially facilitating the cultivation of millions of acres of arable land in Egypt outside the Nile Delta. These agricultural areas are often disconnected from the national grid and forced to rely on costly fuel shipments to power their water pumps. Incorporation of solar power also adds to the organic credentials of organic growers and further reduces their environmental footprint.

Tailor-made lease finance includes funding with a seven-year tenor — the longest payback period in the market, in recognition of the unique economics of renewable energy.EFG Hermes Leasing, the leasing arm of leading Middle East and North Africa financial services corporation, EFG Hermes, has entered into a strategic partnership to offer lease finance solutions to solar energy projects in Egypt.

The collaboration with KarmSolar, Egypt’s largest private off-grid solar energy integrator, is the first of its kind in the industry and will provide sustainable solar energy solutions through the structuring of financing plans tailored to Egyptian businesses with demand for renewable energy.

The solution is particularly well-suited to the nation’s under-served agriculture sector, where it can play a transformative role in growing Egypt’s base of arable land outside the Nile Delta region, easing pressure on Nile water resources and eliminating the need for less environmentally friendly energy sources. Solar power is also ideally suited to more remote areas lacking ready access to the national electricity grids and for growers and businesses looking to reduce reliance on fossil fuels.

Also included in the program are rooftop solar panels for businesses and large corporations looking to add sustainable energy to their power mix or to add new capacity without reliance on the national grid.

“The unique economics of alternative energy creates challenges for businesses seeking alternative energy solutions as well as lenders looking to finance alternative energy projects,” explained Wael Ziada, Executive Chairman of EFG Hermes Finance. “The combination of KarmSolar’s expertise in solar energy solutions and EFG Hermes Leasing’s innovative approach to financing will create new opportunities for businesses across all industries while promoting eco-friendly, environmentally sustainable solutions with a positive social impact.”

Among other industries, the EFG Hermes Leasing-KarmSolar partnership will initially focus on meeting agricultural companies’ rapidly-growing demand for solar energy to power irrigation systems, potentially facilitating the cultivation of millions of acres of arable land in Egypt outside the Nile Delta. These agricultural areas are often disconnected from the national grid and forced to rely on costly fuel shipments to power their water pumps. Incorporation of solar power also adds to the organic credentials of organic growers and further reduces their environmental footprint.

Tailor-made lease finance includes funding with a seven-year tenor — the longest payback period in the market, in recognition of the unique economics of renewable energy.

“The payment structure was designed to benefit the agricultural industry, taking into account the unique seasonality and cash flow cycles of growers and bearing in mind future energy prices and foreign currency rates,” said Ahmed El-Kholy, CEO of EFG Hermes Leasing. “Through meticulous research and with the help of our new vendor partner, we have developed a deep understanding of the product, the feasibility of the project, and the context of the general sector, allowing us to shape a solution that meets the needs of all parties involved.”

The program is the most aggressive financing scheme for solar stations in the Egyptian market, KarmSolar CEO and Co-Founder Ahmed Zahran noted, with a tenor designed to minimize impact on cash flow and “so remove one of the main barriers for farms, factories, and households to invest in solar systems.”

Zahran added, “We have a mission to minimize all barriers to entry for the agribusiness industry, across both individual farmers and corporations, for the use of solar energy solutions. We’ve been achieving this through continuous research and development to develop and provide cost-effective technologies. Today’s financing agreement with EFG Hermes Leasing is a great milestone that will have significant impact on breaking those barriers, and on proving that solar energy is an accessible alternative.”

In addition to the social and environmental impact, clean energy for the agricultural sector provides growers with the opportunity to burnish their organic credentials; organic crops are the fastest-growing segment in Egypt’s agriculture industry.

As demand for energy continues to grow across sectors, subsidy cuts and rising awareness of the environmental impact of fossil fuels are encouraging demand for clean, renewable energy. The vendor partner program between EFG Hermes Leasing and KarmSolar will allow businesses across the country to not only meet their individual energy requirements through a reasonably-priced custom financing plan, but also save costs while contributing to the health and sustainability of their communities.

“The payment structure was designed to benefit the agricultural industry, taking into account the unique seasonality and cash flow cycles of growers and bearing in mind future energy prices and foreign currency rates,” said Ahmed El-Kholy, CEO of EFG Hermes Leasing. “Through meticulous research and with the help of our new vendor partner, we have developed a deep understanding of the product, the feasibility of the project, and the context of the general sector, allowing us to shape a solution that meets the needs of all parties involved.”

The program is the most aggressive financing scheme for solar stations in the Egyptian market, KarmSolar CEO and Co-Founder Ahmed Zahran noted, with a tenor designed to minimize impact on cash flow and “so remove one of the main barriers for farms, factories, and households to invest in solar systems.”

Zahran added, “We have a mission to minimize all barriers to entry for the agribusiness industry, across both individual farmers and corporations, for the use of solar energy solutions. We’ve been achieving this through continuous research and development to develop and provide cost-effective technologies. Today’s financing agreement with EFG Hermes Leasing is a great milestone that will have significant impact on breaking those barriers, and on proving that solar energy is an accessible alternative.”

In addition to the social and environmental impact, clean energy for the agricultural sector provides growers with the opportunity to burnish their organic credentials; organic crops are the fastest-growing segment in Egypt’s agriculture industry.

As demand for energy continues to grow across sectors, subsidy cuts and rising awareness of the environmental impact of fossil fuels are encouraging demand for clean, renewable energy. The vendor partner program between EFG Hermes Leasing and KarmSolar will allow businesses across the country to not only meet their individual energy requirements through a reasonably-priced custom financing plan, but also save costs while contributing to the health and sustainability of their communities.

#Related keywords

All rights reserved to Arab Finance 2015 ©

Back to top