Gulf of Suez Wind Farm II Expansion (150MW)

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The project comprises the expansion of EBRD loan of Gulf of Suez wind farm in Egypt with an additional capacity of 150MW. The project is sponsored by a consortium of sponsors, including Engie, Orascom Construction, Toyota Tsusho Corporation and Eurus Energy, which incorporated Red Sea Wind Energy as a project company. After the expansion the project company will build, own and operate an aggregate of 650 megawatt capacity with 104 wind turbine generators. It received a $21.3m senior secured loan by the European Bank for Reconstruction and Development (EBRD) for the present expansion in November 2024. The EBRD funding falls under the Nexus on Water, Food and Energy programme and complements an existing loan provided by the EBRD and the Green Climate Fund in 2023, in favour of Red Sea Wind Energy, to finance the original 500 MW wind farm. The other lenders are: Japan Bank for International Cooperation, which extended $51m under project finance scheme. Three banks were Mandated Lead Arrangers: Norinchukin Bank $8.67m; Societe Generale $8.66m; and Sumitomo Mitsui Banking Corporation $8.67m. It is expected the project to reduce annual CO2 emissions by around 1.3 million tonnes. On November 19, 2024 Nippon Export and Investment Insurance (NEXI) provided insurance for loans extended by commercial financial institutions to the Gulf of Suez 2 Wind Power Expansion Project. The amount is $35m with tenor of 21 years. Political risk 100%, Commercial risk 97.5%. Nippon Export and Investment Insurance ( NEXI ) will also provide cover for the interest rate swap agreement guaranteed by SMBC. https://www.ebrd.com/news/2024/ebrd-to-support-expansion-of-largest-windfarm-in-africa.html ; https://www.nexi.go.jp/en/topics/newsrelease/202410220549.html ; https://www.theasset.com/article/52971/jbic-nexi-back-gulf-of-suez-2-wind-power-expansion ; https://www.jbic.go.jp/en/information/press/press-2024/press_00089.html ; https://www.eurus-energy.com/en/release/press-release/111915/ ; https://www.ebrd.com/work-with-us/projects/psd/51509.html