Misr Financial Investment Company, a subsidiary of Misr Holding for Insurance, plans to establish a new renewable energy company to build two electricity production units in Kafr El-Sheikh with investments of EGP 120m.
Atef al-Mahmoudi, chairperson and managing director of Misr Financial Investment, told Daily News Egypt that his company intends to contribute 50% of the new renewable energy company’s capital, amounting to EGP 36m, through Misr Investment Fund, which is managed by his company.
He said that the establishment procedures of the new company will kick off in July, and it will work on establishing two electricity production units with a capacity of 20MW, using animal waste, with investments of EGP 120m while the rest of the funding will be secured from banks.
He pointed out that the Misr Investment Fund has achieved an increase in profits in the third quarter (Q3) of the fiscal year (FY) 2016/2017, recording a net profit of EGP 31m compared to EGP 11m in Q3 of FY 2015/2016, with a growth rate of 182%.
He revealed that the fund aims to diversify its investments, noting that its assets amount to EGP 470m. The fund achieved a profit growth of 102% in FY 2015/2016, supported by high interest rates, the recovery of capital markets, and the diversification of the fund’s investments.
Al-Mahmoudi said that he aims to increase the fund’s investments to EGP 128m by the end of 2017. Moreover, the fund owns 98% of Luxor Marassi with investments of EGP 98m. The company has many licenses, most notably in tourism and real estate activities. The company’s different types of licenses helped it to avoid the negative effects of the tourism crisis. The fund also has EGP 18m in the renewable energy company and EGP 12m in the Egyptian Takaful Insurance.