EBRD is mobilising $31.2mn in loans to generate 48.3 MW of solar energy in Jordan

The European Bank for Reconstruction and Development (EBRD) in co-operation with DEG, a German development finance institution, is mobilising $31.2mn in senior secured loans for Yellow Door Energy to develop, construct and operate eight solar plants in Jordan. The portfolio of solar plants with a total capacity of 48.3 MW will supply the entirety of the electricity generated to five private consumers: Umniah (telecommunications industry), Carrefour supermarkets, Safeway supermarkets and Taj Mall (retail industry), as well as Classic Fashion (garments manufacturing).

EBRD and DEG are providing a $10.6mn loan in local currency to be complemented by a $5mn loan from the multilateral bank’s Global Environment Facility, as well as a parallel $15.6mn senior loan in local currency from DEG and equity contribution from Yellow Door Energy. Spain is also providing result-based payments of up to €1.5mn ($1.81mn).

In this transaction, HSBC acts as the offshore account bank and the offshore security agent. Arab Bank acts as the onshore account bank and the onshore security agent.

Yellow Door Energy was founded in 2015 in the United Arab Emirates and Jordan, with the aim of providing sustainable energy solutions for businesses. Today, the company has over 110 MW of solar projects in the Middle East and South Asia. Yellow Door Energy’s shareholders include the International Finance Corporation, Mitsui, Equinor and APICORP.