Arab Republic of Egypt / Loan Insurance for Gulf of Suez 2 Wind Power Expansion Project

Nippon Export and Investment Insurance (NEXI; Chairman and CEO: Atsuo Kuroda) decided to provide insurance for loans extended by commercial financial institutions to the Gulf of Suez 2 Wind Power Expansion Project. The project is developed by Red Sea Wind Energy S.A.E. (the Project Company) invested by Toyota Tsusho Corporation and Eurus Energy Holdings Corporation with their partners, Engie S.A. and Orascom Construction S.A.E. The Project Company has been developing the 500-megawatt onshore wind farm consisting of 84 wind turbine generators, located in the Ras Ghareb region facing the Red Sea, approximately 200 km southeast of Cairo, the Arab Republic of Egypt (Egypt)¹. With additional development of 150 megawatt onshore wind farm consisting of 20 wind turbine generators, the Project Company will build, own and operate an aggregate of 650 megawatt capacity with 104 wind turbine generators. This will make the project the largest wind farm in Africa in terms of installed capacity. The power generated at the wind farm will be sold to the Egyptian Electricity Transmission Company under a 25-year Power Purchase Agreement (PPA), and the Ministry of Finance of Egypt has issued a guarantee for the PPA.

NEXI also provides Loan Insurance for Green Innovation² with commercial risk coverage of 97.5% due to its contribution to environmental protection and climate change prevention. The project is in line with the LEAD Initiative³ (in the Environment and Energy field) which NEXI actively promotes.

The Egyptian government set a specific target to increase the share of renewables in the national energy mix to 42% by 2030. This project is expected to play a significant role in Egypt as a measure aligned with Egypt’s renewable energy strategy.

Of the project financing procured by the Project Company from EBRD, Japan Bank for International Cooperation (JBIC), Sumitomo Mitsui Banking Corporation (SMBC), Societe Generale Tokyo Branch, The Norinchukin Bank, NEXI provides cover for approximately USD 35 million loan extended by the commercial banks, as well as for the interest rate swap agreement guaranteed by SMBC.

The financial support from NEXI is expected to expand the business opportunities of Japanese companies in Africa including Egypt, as well as maintain and increase the global competitiveness of Japanese businesses in renewable energy development.

NEXI will continue to actively support Japanese companies to expand their global business, as a Japanese financial institution to implement national policies.

Contact
Power Group, Structured and Trade Finance Insurance Department
Tel: +81-3-3512-7340