Green Sky Capital signs landmark financing for a Sustainable Aviation Fuel facility in Egypt
Sokhna, located within the Suez Canal Economic Zone (“SCZone”), Egypt, marking a defining step in the development of a large-scale SAF industry in the region.
The project represents a strategic milestone for regional energy transition and positions Green Sky Capital at the forefront of the fast-growing global SAF market. As one of the region’s first industrial-scale SAF platforms, the facility is expected to play a key role in supporting the aviation sector’s decarbonisation, in line with the International Air Transport Association target to achieve net zero carbon emissions by 2050.
The project is being developed with the support of leading regional sponsors, including Al Mana Holding, a leading Qatari diversified conglomerate, and Vision Invest, a leading Saudi Arabian infrastructure investor and developer, both of which bring strong track records in delivering large-scale infrastructure and energy projects across the region.
The Arab Energy Fund, a multilateral impact financial institution, acting as the Global Structuring Bank and Co-Mandated Lead Arranger, played a central role in the transaction and supported the financing as the largest lender to the Project.
The Emerging Africa & Asia Infrastructure Fund Limited (EAAIF), acting through Ninety One, acted as Global Mandated Lead Arranger and Coordinating Lender, playing a key role in co-leading, and co-ordinating the delivery of this landmark transaction, building on its experience after backing one of the first sustainable aviation fuel plants in South Asia.
Ninety One also invested through its Emerging Markets Debt Fund (EMTD) and facilitated the participation of Qatar National Bank S.A.E. in the financing as Lender, Onshore Account Bank and Onshore Security Agent.
The facility will be constructed on a 100,000-square-metre site in Ain Sokhna and is expected to produce up to 200,000 tonnes per annum of biofuels, including SAF, Hydrotreated Vegetable Oil (“HVO”), biopropane and bionaphtha. Strategically located along the Suez Canal, the project reinforces the region’s role in global energy transition value chains. Commercial operations are targeted by the end of 2027.
The project benefits from a long-term offtake agreement with Shell. Green Sky Capital has also entered into a technology agreement with Axens and an EPC contract with SeaOwl.
Rothschild & Co acted as financial advisor to Green Sky Capital on the transaction. White & Case acted as legal advisor to the borrower, and Clifford Chance acted as legal advisor to the lenders.
Ali Shaikh, Chief Executive Officer of Green Sky Capital, commented:
“The signing of this financing marks a defining step in the development of our SAF platform and underscores the strategic importance of this project for the region. By combining strong partners, proven technology and long-term offtake, we are well positioned to deliver one of the region’s leading SAF production facilities and support the aviation sector’s transition to more sustainable fuels.”
Nicolas Thévenot, Chief Banking Officer of The Arab Energy Fund, commented:
“The Arab Energy Fund is proud to support the development of one of the region’s first Sustainable Aviation Fuel projects in Egypt, a key member state. This transaction highlights our role in enabling new energy sectors and demonstrates our capability to structure complex financings to support decarbonization and advance the energy transition.”
Tidiane Doucoure, Director, Emerging Market Alternative Credit at Ninety One, said:
“This landmark transaction marks EAAIF’ second investment in Sustainable Aviation Fuel and builds on our expertise and commitment to pioneer technologies that support the decarbonisation of hard-to-abate sectors like aviation. Our support to Green Sky Capital for this first-of-its-kind facility in Egypt and the MENA region is a strategic response to the urgent global need for energy transition and security.”
Abdulla Mubarak Al-Khalifa, Chief Executive Officer of QNB Group commented:
“Supporting the development of Green Sky Capital’s SAF facility reflects QNB’s commitment to backing projects that deliver both economic value and long-term sustainability outcomes across the region. Financing innovative, technology-led solutions is a core part of our Group strategy.”
