Actis to acquire controlling stake in UAE-based Yellow Door Energy

Actis, a leading global investor in sustainable infrastructure, has announced the signing of definitive transaction documents for the acquisition of a controlling stake in Yellow Door Energy (YDE) Limited.

YDE is the leading distributed Commercial & Industrial (C&I) solar platform in the Middle East and Africa (MEA) region with around 200MW of secured production capacity. Closing of the transaction remains subject to obtaining the relevant regulatory approvals.

In all its target markets, YDE can offer customers a power supply that is more economical and sustainable than the grid. Demonstrating 10%-50% power cost savings for customers, the company is positioned in the fast-growing C&I segment, in key MEA markets.

YDE has one of few operating C&I portfolios of scale in the region with 106 MW in operation and 104 MW awarded and under construction. The company has key existing relationships with a large customer base of over 50 companies, including sought after blue-chip businesses such as Nestlé, Majid Al Futtaim, DHL, Mondelēz and Unilever.

Energy supply in the Middle East is heavily dependent on fossil fuels (>90%). Renewable technology deployment is a key enabler for businesses to achieve low carbon transition strategies, and with this latest investment Actis continues its mission to advance a low carbon transition.

The transaction will be funded through Actis’ Energy 5 Fund, Actis’ latest energy fund with $6 billion of investable capital to accelerate the Energy Transition globally. Actis will apply its successful buy-and-build power strategy to scale the business and accelerate growth. The team has invested in over 70 renewable energy projects to date, generating approximately 11GW of renewable energy globally.

Uniquely Positioned

Shami Nissan, Partner and Head of Sustainability at Actis, said: “We are happy about our partnership with YDe which is helping customers across MEA transition to Net Zero and reduce fossil fuel emissions. Actis is a signatory to the Net Zero Asset Managers Initiative which supports the goal of Net Zero emissions by 2050 and we recently announced our own portfolio-wide 2050 Net Zero target. We feel uniquely positioned to help Yellow Door Energy continue its growth journey across the Middle East and Africa region.”

Jeremy Crane, Founder and CEO of YDe, said: “This investment complemented by increased investments from our current shareholders, Mitsui & Co., Ltd., APICORP, and IFC, is an attestation to the success of our company. As a result, our customers will become more successful, create more jobs and contribute to their local communities. This investment will enable us to scale geographically through both direct and M&A activities.”

Accelerate YDE’s Growth

Yosuke Matsumoto, GM of New Downstream Business Div. Mitsui & Co Ltd, said: “We are delighted to see YDE’s growth and contribution to the region’s green energy among the C&I sector, since our participation. We welcome the participation by Actis and believe this partnership will further accelerate YDE’s growth. Mitsui is committed to developing and promoting technologies and new business that reduces environmental impact and will continue to contribute to Yellow Door Energy.”

Khalid Ali Al-Ruwaigh, CEO of APICORP, said: “As one of our earliest equity investments in the renewable energy space, YDE has demonstrated strong business growth over the past few years thanks to its commitment towards innovation and advancing the Energy Transition. We believe having a reputable partner such as Actis will propel the company to the next stage of its growth. The additional backing is especially relevant today considering the growing urgency to meet decarbonisation goals and bolster the sustainability of the regional energy landscape.”

Lance Crist, IFC’s Global Head of Infrastructure Equity, said: “Our early investment in YDE is part of IFC’s global strategy of working with early-stage companies and promoting affordable, reliable and clean energy in emerging markets. We are proud to be a partner in Yellow Door Energy’s successful evolution as the company continues to grow from its home base of UAE and expand its footprint across MEA and other regions. We look forward to supporting their further growth as a leader in bringing clean energy technology to their customers throughout the region.”

Actis has recently realised three major energy investments in Latin America – the largest independent renewable energy platform in Brazil, the largest renewable energy IPP (independent power provider) in Chile and a leading IPP in Mexico.