In a recent milestone for the Suez Wind power plant, Acwa Power which is a leading developer and operator for power generation projects, has secured $702 million Suez Wind Power Plant Financing.
Moreover, a consortium which comprises of development financial institutions comprising the European Bank for Reconstruction and Development (EBRD) African Development Bank; British International Investment; DEG – Deutsche Investitions; Opec Fund for International Development and Arab Petroleum Investments Corporation will be issuing the Suez Wind Power Plant Financing for the principal debt for a period of 20 years.
Suez Wind Power Plant Financing Factsheet
Suez Wind Power Plant Financing Amount: ACWA Power managed to secure $703 million (SAR 2.63 billion) for the project
Project Capacity: The wind power plant will possess an impressive capacity of 1,100 megawatts (1.1GW).
Location: The plant is located in Egypt’s Suez governorate
Funding/Finacing Sources: The funding was sourced from the European Bank for Reconstruction and Development (EBRD). and African Development Bank (AfDB). Also, British International Investment, DEG Deutsche Investitions, OPEC Fund for International Development, and Arab Petroleum Investments Corp provided funding.
Loan Tenure: The loan has a tenure of 20 years.
Total Investment: The total investment cost of the plant is SAR 4.13 billion.
Ownership: ACWA Power holds a 70% stake in the project.
Project Goals: The project aligns with Egypt’s green energy ambitions, aiming to generate 42% of the nation’s electricity from renewable sources
Also read: $440 Million Abydos 1 Solar Plant Inaugurated in Egypt
Financers of the Suez Wind Power Plant Financing
Additionally, it is also important to note that the Standard Chartered Bank and also the Arab Bank are also part of this Suez Wind Power Plant Financing via a B loan structure of EBRD.
The funding was sourced from the European Bank for Reconstruction and Development (EBRD), African Development Bank (AfDB), British International Investment, DEG Deutsche Investitions, OPEC Fund for International Development, and Arab Petroleum Investments Corp
Furthermore, in the Suez power project, Acwa Power possesses a majority shareholding of 70%. This project is being constructed at a cumulative investment of $1.1 billion.
Details of the Financing Agreement
Furthermore, the financing agreement of this energy project comprises of quite a number of guarantees. This includes a limited guarantee on Acwa Power’s share of this bridge loan, the liquidity reserves and even the development guarantees. This information was revealed by Acwa Power in its bourse filing.
Lastly, this financing will be utilised in both the development and construction works of the Suez Power Plant. Moreover, it will be used for the maintenance works of the project.
Also read: AfDB Approves $170 Million Loan for Egypt’s Largest Wind Energy Project: The Gulf of Suez Wind Energy Project