The Emerging Africa & Asia Infrastructure Fund (EAAIF), part of the Private Infrastructure Development Group and managed by Ninety One, has committed a $40 million senior secured loan to support the development of Egypt’s first sustainable aviation fuel (SAF) production facility.

The financing marks what is described as the first project-financed SAF plant in Africa and the Middle East, underscoring growing investor interest in renewable fuels infrastructure.

The $212.4 million project will be located in Egypt’s Sokhna Special Economic Zone and developed by Green Sky Capital Limited and its local subsidiary, SAF Fly Egypt. Once operational, the facility is expected to produce 200,000 tonnes per year of biofuels, including SAF, hydrotreated vegetable oil, bio-propane and bio-naphtha.

The plant will use Hydroprocessed Esters and Fatty Acids (HEFA) technology, a commercially established process that converts waste-based feedstock into sustainable fuels. Energy major Shell will play a central role in the project, acting as both the primary feedstock supplier and the offtaker under a long-term take-or-pay agreement, a structure designed to support the project’s bankability.

Regional investors are also backing the development. Sponsors include Al Mana Holding and Vision Invest, both of which have experience in large-scale infrastructure and energy projects.

Ninety One acted as global mandated lead arranger and coordinating lender, helping to mobilise a total debt package of $142.9 million. This includes the $40 million commitment from EAAIF and Ninety One’s Emerging Markets Transition Debt fund.

Additional financing was provided by Qatar National Bank, through its Egyptian subsidiary, with a commitment of up to $31.4 million, and by The Arab Energy Fund, which contributed $71.4 million as co-mandated lead arranger and structuring lender.

The transaction highlights continued appetite among regional and international lenders for renewable energy and transition-related infrastructure, particularly in sectors considered hard to decarbonise.

Martijn Proos, co-head of emerging market alternative credit at Ninety One, said the deal comes at a pivotal time for global energy markets.

“This transaction arrives at a critical juncture for the global energy market. Amid heightened geopolitical volatility and energy market uncertainty, this first-of-its-kind facility provides a practical solution to advancing both decarbonisation and energy security,” he said.

He added that the project demonstrates how institutional capital can be mobilised to support sectors such as aviation, which could account for around 5% of global emissions by 2050 without intervention.

Sustainable aviation fuel is seen as a key component in reducing emissions from air travel, with estimates suggesting it can cut lifecycle carbon emissions by up to 80% compared with conventional jet fuel.

Alper Kilic, head of alternative credit at Ninety One, said the investment reflects the increasing role of long-term capital in supporting energy transition projects in emerging markets.

“Emerging markets have been transitioning toward renewables and cleaner energy sources for some time, driven by rising energy costs and the need to strengthen energy security,” he said.

“This project demonstrates how institutional investors can pursue attractive risk-adjusted returns while supporting the real-economy transition.”

The project’s location near the Suez Canal is expected to provide a strategic advantage, offering direct export routes to key markets in Europe and the UK, where regulatory mandates for sustainable aviation fuel are tightening.

For EAAIF, the investment also signals its continued expansion beyond Africa into the Middle East and Asia, as it seeks to back infrastructure projects aligned with energy transition and sustainability objectives.