Africa's First
Green Project Bonds

Mazghouny & Co advised on the USD 334.5 million refinancing of six Scatec solar power plants at Benban Solar Park — a transaction that achieved two historic firsts: Africa's first green project bonds and Egypt's first project bond issuance of any kind.

The transaction involved the refinancing of six operational solar plants totalling 380 MW at Benban — one of the world's largest solar power complexes, located in Aswan, Upper Egypt. The refinancing was structured as a project bond with a 19-year tenor, replacing the initial project finance facilities provided at construction.

The bonds received Climate Bond Certification from the Climate Bonds Initiative, confirming alignment with international green finance standards. This certification was a critical component of achieving the green bond designation and required detailed diligence and documentation on the environmental performance of the plants.

Significance

The transaction established a new asset class for Africa — green project bonds for renewable energy infrastructure — and demonstrated the bankability of Egyptian solar assets to international capital markets. The 19-year tenor, achieved through a project bond structure rather than bank debt, provided the project with long-term, fixed-rate financing that closely matched the duration of the underlying power purchase agreements.

As Egypt's first project bond, the transaction required navigation of Egypt's capital markets regulations alongside the international bond documentation framework — a dual-track legal exercise that the firm led as Egyptian counsel.