Alcazar Energy's 2nd fund raises USD 490m for emerging market renewables

Dubai-based sustainable infrastructure investor Alcazar Energy said on Tuesday it has raised a total of USD 490 million (EUR 452.4m) for its second renewables fund, aiming to pour the proceeds into the clean energy projects in emerging markets.

Alcazar Energy Partners II SLP (AEP-II) fund was backed by eight investors, including the US International Finance Corporation (DFC), in the second capital raising round. These join the previous group of eight that took part in the first close of USD 336.6 million, including the European Bank for Reconstruction and Development, the European Investment Bank, a fund managed by Allianz Global Investors, the International Finance Corporation, the Asian Infrastructure Investment Bank, and development banks and agencies from Germany, France and the Netherlands.

Alcazar Energy was targeting USD 500 million and a hard cap of USD 650 million, but completed the final closing of AEP-II at USD 490 million in what co-founder and managing partner Daniel Calderon called “challenging market conditions”.

AEP-II will use the money to invest in the development of over 1.6 GW of onshore wind and solar photovoltaic projects across select emerging markets. Among the regions of interest is the Western Balkans where the fund already acquired the rights for two wind farm projects totalling 465 MW, one of them in Montenegro.

The fund will also target select countries in the Middle East, North Africa and Turkey region and Central Asia.

“With this fund, we are well positioned to continue investing in essential renewable energy projects that advance the energy transition in places that are historically underserved by the traditional investment community,” Calderon said.

(USD 1.0 = EUR 0.923)

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