Graviton Capital, a top investment bank, will look into the potential of investing in small new and renewable energy projects in Egypt, a report said.
The company will carry out the studies in order to understand Egypt’s monetary policy, the basis on which the direction of the dollar will be determined, Ayman Abou Hend, direct investment manager at Cartel Capital, the regional partner of Graviton, was quoted as saying by Daily News Egypt.
Graviton is launching a fund worth $500 million and considering investment opportunities in renewable energy, said Hend.
If Graviton decides to go ahead with the investment, the financing operation will cost up to $20 million, the report said.
Hend added that the value suits small- and medium-sized factories specializing in the production of batteries and solar panels.
“It makes no sense to inject investments knowing that the dollar equals EGP7.73, only to find out that the dollar price increased,” Hend was quoted as saying.
“This means there will be a decline in the company’s profits equivalent to the decline in the Egyptian pound’s value when the firm exits these investments and converts its sales to dollars.”
Daily News Egypt