Dubai’s Alcazar Energy weighs sale, green bond as part of review

Dubai-based Alcazar Energy has resumed a strategic review that could culminate in a sale of the company at an enterprise value of about $1bn, according to people with knowledge of the matter.

The renewable-energy developer has been working with Standard Chartered and hopes to complete the process during the first half of 2021, the people said, asking not to be identified as the information is private.

The company had begun reviewing its options at the start of the year but those plans were put on hold as a result of the coronavirus pandemic, the people said. Alcazar had then attracted interest from local, regional and international players, both trade and private equity firms.

A representative for Alcazar confirmed the news, but said the process is at an early stage and no decision has yet been taken on any potential options.

Among other strategic options being considered by the company is a green bond, which the people said has already received strong initial expressions of interest from potential investors looking to fund environmental projects. The sale of such securities would rank as one of the largest private renewable energy borrowings in the region, they said.

Alcazar is one of the Middle East’s largest private developers and operators of renewable power projects, and its shareholders include the World Bank’s International Finance Corporation, Mubadala Infrastructure Partners and several regional family offices.

The Middle East is home to the world’s biggest oil exporters but governments are increasingly pushing for the development of alternative energy sources to meet growing demand. Alcazar has built and fully owns a portfolio of seven wind and solar projects across Jordan and Egypt.