Prime Highlights
- AEP plans to raise capital to expand its solar energy business across Kuwait and the wider MENA region.
- Kamco Invest and Burgan Bank will lead the transaction, with investors receiving equity stakes and board representation.
Key Facts
- AEP develops, finances, builds and operates solar energy projects under long-term contracts with government and corporate customers.
- The company currently operates in Kuwait, Oman and Jordan and is pursuing new renewable energy projects in Saudi Arabia, Oman, Jordan and Kuwait.
Background
Alternative Energy Projects Company (AEP), a Kuwaiti company specializing in renewable energy production, has said that it is looking for additional funds to fast-track the development of its solar energy venture in Kuwait as well as other countries in MENA. The company has appointed Kamco Invest, in collaboration with Burgan Bank, to lead the transaction.
Under the arrangement, Kamco Invest will establish a special purpose vehicle on behalf of its clients to participate in AEP’s capital increase. The investment will give the participating investors a share in the company’s equity, along with board seat(s) or representation to help its long-term growth strategy.
According to AEP’s chief executive officer, Dr. Hassan Qasem, the company has developed a robust operating foundation that is backed by a seasoned management group and an expanding pipeline of renewable energy projects. He stated that the capital raise will help the company speed up project execution, expand into new regional markets and benefit from the increasing shift towards clean energy.
The company recently secured several competitive solar energy projects in Kuwait and Oman and is pursuing additional commercial, industrial and utility-scale opportunities in Saudi Arabia, Oman, Jordan and Kuwait.
AEP creates, finances, constructs, and manages solar energy projects under long-term contracts with corporate and governmental clients, usually lasting 15 to 25 years. The funds raised will support its pipeline of solar and hybrid off-grid projects across the region.
The deal reflects the growing opportunities in the renewable energy sector as governments across the region are continuing to prioritise sustainable infrastructure, rising energy demand and long-term clean energy goals, said Kamco Invest.
