Egypt’s largest solar and wind power projects secure funding

Egypt’s largest solar and wind power projects secure funding

Financing deals worth $1.1 billion have been arranged for Egypt’s largest solar and wind power projects involving International Financial Corporation (IFC), commercial banks and export credit agencies, it was announced on Wednesday.

The financing package (including debt and equity) was raised by IFC alongside UAE, Japanese, Dutch, and private sector commercial bank partners, IFC said in a press statement.

The statement said the financing package will support UAE-based AMEA Power to build, own, and operate the solar and wind plants, delivering more than 1 gigawatt of renewable energy at the lowest price in Africa.

In November 2022, Zawya Projects had first reported that the solar and wind power projects are expected to achieve financial close by early December, quoting AMEA Chairman Hussein Jasim Al Nowais.

IFC said construction of both projects is scheduled to begin in December 2022, with the solar plant expected to be complete in 18 months and the wind farm in 30 months.

IFC said that it is lending up to $145 million for both projects. As the hedging organisation for both projects, IFC is also removing most of the risk of rising interest rates by swapping the variable interest rate for a fixed rate for the term of loans for the