Arab Republic of Egypt / Loan Insurance for Gulf of Suez 3 Wind Power Project

Nippon Export and Investment Insurance (NEXI; Chairman and CEO: Atsuo Kuroda) decided to provide insurance for loans extended by commercial financial institutions to Shokeir Wind Energy S.A.E. (the Project Company) , which is invested by AEOLUS SAS, a group company of Toyota Tsusho Corporation ( Toyota Tsusho ), together with Engie S.A. and Orascom Construction S.A.E. The Project Company will build, own and operate the 900-megawatt onshore wind farm consisting of 86 wind turbine generators located in the Gulf of El Zayt area, along the Gulf of Suez, approximately 300 km southeast of Cairo, the Arab Republic of Egypt (Egypt). Together with Gulf of Suez 1¹ and Gulf of Suez ² projects, which Toyota Tsusho and its partners own and operate in Egypt, the three projects will constitute one of the largest onshore wind power portfolios in Africa. The power generated will be sold to the Egyptian Electricity Transmission Company (EETC) under a 25-year Power Purchase Agreement (PPA) and the Ministry of Finance of Egypt has issued a guarantee for the PPA.

Of the joint project financing procured by the Project Company from the Société Générale Tokyo Branch, Crédit Agricole Corporate and Investment Bank Tokyo Branch, Japan Bank for International Cooperation (JBIC), Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V. (FMO), Société de Promotion et de Participation pour la Coopération Économique (PROPARCO), NEXI provides cover for approximately USD 190 million loan extended by the commercial banks.

In light of its contribution to environmental protection and climate change mitigation, this project qualifies for Loan Insurance for Green Innovation³. Accordingly, an increased commercial risk coverage of 97.5% is applied. The project also falls within the scope of the LEAD Initiative⁴(in the Environment and Energy field), through which NEXI actively promotes the underwriting of projects that contribute to global carbon neutrality.

The Government of Egypt, in its Nationally Determined Contribution (NDC), updated in June 2023, has set a target of increasing the share of renewable energy in total installed power generation capacity to 42% by 2030, with the aim of maximizing energy production from domestic resources and accelerating the transition toward low-carbon power sources in the electricity sector. The Project is aligned with these national objectives and is expected to play an important role in supporting Egypt’s energy transition.

In addition, the Project contributes to one of the key initiatives under the Government of Japan’s “Infrastructure System Overseas Promotion Strategy 2030,” namely, “Enhancing Japan’s earning power and strengthening its international competitiveness through co-creation with partner countries.”

The financial support from NEXI is expected to expand the business opportunities of Japanese companies in Africa including Egypt, 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.

Insured	Société Générale Tokyo Branch Crédit Agricole Corporate and Investment Bank, Tokyo Branch
Insured value	Approximately USD 190 million
Tenor	21 years
Covered risk	Political risk 100%, Commercial risk 97.5%

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

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