The African Development Bank (AfDB) approved a USD 170 mn loan to Egypt to promote the green transition, private-sector development, and economic diversification, according to a press release issued on Tuesday. The loan — devoted to the second phase of Egypt’s Support Programme for Private Sector Development and Economic Diversification – aims to enhance the business climate in sectors like manufacturing and agribusiness while promoting renewable energy and carbon emission reduction. The World Bank is contributing to this funding phase.

AfDB 💚 Egypt: AfDB approved a loan of USD 131 mn for the first phase of the program in 2023, with financing contributions from the Japan International Cooperation Agency and Korea’s Economic Cooperation Development Fund. It also extended a USD 170 mn loan for Acwa Power and Hassan Allam Utilities’ USD 1.1 bn, 1.1 GW Suez wind farm in Egypt last December.

MORE GREEN FINANCE UPDATES FROM THE REGION-

#1- Cleanmax’ solar projects in UAE get HSBC backing: HSBC has extended a long-term AED 99 mn (c. USD 27 mn) credit facility to CleanMax — the India-based Brookfield-backed renewable energy provider — to develop 92 onsite solar projects across the country, Cleanmax said in a press release (pdf) on Wednesday. The projects will be implemented in industrial facilities, malls, schools, and universities. The partnership’s financing arrangement includes an uncommitted AED 37 mn (USD 10 mn) allocation for potential future renewable energy projects.

HSBC’s affinity for Indian-led green projects isn’t new: ADIA-backed Indian real estate asset manager Lake Shore secured a USD 143 mn green loan from HSBC to refinance lenders of its Viviana mall acquisition last October. The loan was obtained through Lake Shore’s subsidiary and the mall owner Salsette Developers.

#2- Elsewedy achieves financial close for Greece’s first large-scale BESS: Egypt’s Elsewedy Electric has reached financial close for its 50 MW/100 MWh battery energy storage system (BESS) project in Central Greece through its wholly owned subsidiary Energy Bank S.A, according to a press release (pdf) on Monday. The project is expected to be operational by 4Q 2025, AlMal report.

The financing: The project — selected in Greece’s first BESS competitive procedure back in July 2023 — will see its funding come in a mix of loans and grants, including a EUR 10 mn state aid grant, a EUR 5.5 mn loan from the EU’s Recovery and Resilience Fund, alongside EUR 10 mn non-recourse project finance loan from the National Bank of Greece (NBG), according to the statement.

Elsewedy is no stranger to Greece: In 2019, Elsewedy inked a EUR 55 mn agreement to acquire stakes in three wind assets and one hydroelectric company from Greece’s R.F. Energy, with the NBG providing a EUR 41.7 mn loan to partially finance the acquisition.

#3- Egypt secures financing facility from Japan to support several priorities, including green transition: Egypt and Japan have signed a development financing agreement for USD 230 mn to support the country’s National Structural Reform Program, according to a press release published last week. The program aims to support the transition to a green economy, enhance macroeconomic stability, and diversify Egypt’s production structure by focusing on real economy sectors such as industry and agriculture.

Japan 💚 Egypt’s green transition: The Japan International Cooperation Agency, Japan Bank for International Cooperation (JBIC), Sumitomo Mitsui Banking Corporation, and Sumitomo Mitsui Trust Bank financed Amea Power’s USD 1.1 bn, 560 MW solar plant and 505 MW wind farm in Egypt in 2022. JBIC was also interested in investing in Egypt’s green hydrogen sector by financing interested Japanese companies and forging partnerships with regional investment funds.

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