Energy Transaction Brief: Suez Wind secures $30 million loan from OPEC Fund

Transaction Summary

The OPEC Fund for International Development (OPEC Fund) announced a commitment of $30 million in senior debt financing to Suez Wind Energy S.A.E (Suez Wind) to develop Africa’s largest onshore wind project in Egypt’s Gulf of Suez region. Suez Wind is a joint venture between ACWA Power (70% stake) and HAU Energy BV (30% stake). ACWA Power is a leading developer, investor, and operator of power generation assets, managing a $97 billion portfolio with a total capacity of 69.2 GW. HAU Energy BV (HAU Energy) is the funding vehicle of Hassan Allam Utilities, the investment and development arm of Hassan Allam Holding, a renowned Egyptian engineering and construction company. Expected to be operational by Q2 2027, the Suez Wind project comprises two 550 MW wind farms, with 138 turbines of 8 MW each and will power over 1 million homes while reducing annual carbon emissions by 2.5 million tonnes. The OPEC debt commitment is part of the $703.6 million senior debt financing Suez Wind has so far secured from a range of financial institutions, including the European Bank for Reconstruction and Development (EBRD), the African Development Bank (AfDB), British International Investment Corporation (BII), the German Investment Corporation (Deutsche Investitions- und Entwicklungsgesellschaft), and the Arab Petroleum Investments Corporation (APICORP). 

Terms

• Fund Managers: OPEC Fund for International Development
• Target: Suez Wind (a joint venture between ACWA Power and HAU Energy)
• Financing Type: Debt
• Investment Strategy: Project financing
• Financing Instrument: Senior debt
• Amount: $30 million

Transaction Rationale

The OPEC Fund’s investment in the Suez wind farm underscores its plan to support energy transitions in the Global South by financing $24 billion in climate-aligned initiatives in partnership with the Arab Coordination Group by 2030. It also builds on the OPEC Fund’s renewable energy investments in Egypt, including the Kom Ombo solar plant...

• Market Opportunity: The Suez Wind Farm capitalises on Egypt’s goal to raise renewable energy to 42% of the electricity mix by 2030. As part of the Nexus of Water, Food, and Energy (NWFE) programme, which aims to mobilise $14.7 billion for critical sustainability projects under the National Climate Change Strategy 2050...
• Risk/Return Analysis: The Suez Wind Farm presents an attractive risk/return profile, with revenue and cash flow stability assured by a 25-year Power Purchase Agreement (PPA) between the ACWA Power Consortium and the Egyptian Electricity Transmission Company (EETC)...

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