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Asia Connect / Europe
Gulf of Suez wind farm secures US$501 million credit
EBRD, JBIC and NEXI close first major project financing under cooperation agreements
Michael Marray 12 Apr 2023

The Red Sea Wind Energy Consortium has reached financial close on its 500-megawatt Gulf of Suez wind project in eastern Egypt.

The US$501 million loan is co-financed by the European Bank for Reconstruction and Development, Japan Bank for International Cooperation, and private commercial banks insured by Nippon Export and Investment Insurance.

The project marks the first co-financing between JBIC and the EBRD since the signing of a memorandum of understanding in October 2022, to fortify cooperation between the two organizations, and the first joint project between NEXI and the EBRD since the signing of an MOU in October 2020.

Red Sea Wind Energy Consortium is a joint venture of Engie of France (35%), Orascom of Egypt (25%), and Toyota Tsusho Corp and Eurus Energy Holdings of Japan (20% each).

EBRD and the Green Climate Fund are each contributing US$50 million to the senior secured loan to the project company, which will fund the development, construction and operation of the onshore wind farm, located near Ras Ghareb, on the Gulf of Suez in eastern Egypt. This the first EBRD project under the Nexus on Water, Food and Energy programme.

As announced by JBIC in early March, it will lend US$240 million to the project. The private commercial banks participating are Sumitomo Mitsui Banking Corporation, Norinchukin Bank, and Société Générale, insured by NEXI. HSBC Bank Egypt is the working capital bank and onshore security agent for the project.

This will be Egypt’s third private wind farm and is expected to be the largest in Africa. The 500MW capacity will be installed in two phases, which should be completed and connected to the grid in the third quarter of 2025.

The wind park will be operated under a 25-year power purchase agreement (PPA) with the Egyptian Electricity Transmission Company.

The project follows the 262.5MW Ras Ghareb wind park, which was developed by the same consortium and commissioned in 2019.

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