Valoris Capital launches a fund to promote the self-production of medium-voltage electricity

Morocco continues to increase its investment portfolio focused on green energy. Valoris Capital has launched a project under the name of Valoris Alternative Investments Fund (VAIF) which aims to "promote the self-production of medium voltage electricity for Moroccan industrial and agricultural companies". This business model will focus on the third party investor principle, i.e. Valoris will be in charge of investing, operating and marketing energy assets before selling them to its customers.

Valoris - parent company of the subsidiary Valoris Capital - is thus launching its second fund in less than two years. Already in 2022, it focused on SMEs with the Valoris Equity Fund, its first investment fund which closed at 300 million dirhams - just over 27 million euros - and maintains a target of 800 million dirhams for next year.

According to the CEO of Valoris Capital, Mokhlis El Idrissi, the company seeks to "contribute to the real strategy of developing a competitive economy, but low in terms of emissions". He also highlights the current boom in green energy, which, above all, is being promoted by the Moroccan kingdom. That is why they have set a target capital of 550 million dirhams - 50 million euros - for this new fund, which will have an investment of one billion - 91.4 million euros -.

Valoris Capital aims to create an infrastructure with a capacity of 120 MWp (megawatt peak), which would save 120,000 kilotons of CO2 per year. To achieve this, it has a number of investors, including pension organisations, a bank and UCITS (Undertakings for Collective Investment in Transferable Securities). Moreover, as it is not a private equity fund, the underlying makes it possible to make a profit in the short term, without having to wait until the end of the fund's life.

This one in particular has a planned duration of 14 years and, in addition, is also supported by medium- and long-term contracts. El Idrissi states that "the customer does not worry about the technical aspects, he transfers the material management of this infrastructure, i.e. maintenance and operation, in exchange for a service contract ranging from 6 to 14 years". This section is really important as it allows for the maintenance of debt capacity, one of the major concerns in the country due to the level of indebtedness of many companies in Morocco today.