Renewable energy developer Yellow Door Energy has raised $400 million in a new funding round led by British private equity company Actis, the Dubai company's largest stakeholder, as it plans expansion into new markets.
The investment, which includes the purchase of current shares, will allow the company’s initial investors to exit, Yellow Door Energy said in a statement on Wednesday.
The World Bank's International Finance Corporation (IFC), Japan’s Mitsui, and Saudi Arabia's Arab Petroleum Investments Corporation (Apicorp), also increased their shareholding in Yellow Door Energy, which continues to develop sustainable energy projects in the Middle East and Africa.
After the latest funding round, the company said its business plan is now “fully funded” and that it aims to invest more than $1 billion in projects that will be funded through a combination of equity and debt securities.
“This substantial investment will enable Yellow Door Energy to rapidly expand into new countries,” said Jeremy Crane, founder and chief executive of Yellow Door Energy.
Yellow Door Energy, which was spun off from the Middle East-focused solar energy investor Adenium Energy Capital in 2015, operates solar photovoltaic projects in the UAE, Saudi Arabia, Bahrain, Egypt, Jordan and Pakistan.
In the region, the company has key existing relationships, with a large customer base of more than 50 organisations, including blue-chip businesses such as Nestlé, Majid Al Futtaim, DHL, Mondelez and Unilever.
In July, Actis said it would acquire a controlling stake in Yellow Door Energy during a surge in demand for renewable energy sources worldwide.
“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,” said Lucy Heintz, partner and head of energy infrastructure at Actis.
“We see a clear opportunity to help Yellow Door Energy continue its growth journey and to build the region’s distributed solar sustainability leader.”