Japanese, European banks extend $501MN for Egypt wind project

An agreement for financing of US$501 million from a group of lenders has been reached with the developers of an Egyptian wind farm.

The financing was negotiated for a 500 megawatt facility on the banks of the Gulf of Suez by Red Sea Wind Energy, a joint venture between the Egyptian company Orascom Construction, France's Engie, and Japan's Toyota Tsusho and its subsidiary Eurus Energy.

According to the Japan Bank for International Cooperation (JBIC), it will contribute US$240 million to the facility. The European Bank for Reconstruction and Development (EBRD), SMBC, Norinchukin Bank, and Société Générale will each contribute the remaining funds.

Nippon Export and Investment Insurance (Nexi), Japan's official export credit insurer, is paying for the commercial banks' share of the loan.

For the anticipated 25-year life of the facility, Red Sea Wind Energy has agreed to sell electricity produced by the project to the Egyptian Electricity Transmission Company. The project will cost approximately US$600 million, and construction is expected to start this month. Commercial operations are expected to start in August 2025.