SFE could invest in ACWA, Hassan Allam wind farm: The Sovereign Fund of Egypt (SFE) could acquire a minority stake in ACWA Power’s planned 1.1-GW wind farm in the Gulf of Suez. The wealth fund is considering making an investment in the facility under the terms of an MoU signed with the Saudi renewables developer yesterday, which could see it “potentially acquire up to 10%” of the USD 1.5 bn project, the SFE said in a statement (pdf). That would see the fund invest up to USD 150 mn in the project, according to our math. A final agreement will be announced “soon,” three sources familiar with the matter told Bloomberg Asharq yesterday.

The second sovereign fund to the party: News of the SFE’s potential buy-in comes a week after the Oman Investment Authority inked an MoU with ACWA to acquire a 10% stake in the wind farm. The SFE would also buy its stake from ACWA, which currently owns 75% of the project, while Hassan Allam Holding is set to retain its 25% stake, according to Asharq.

More finance in the pipeline? The European Bank for Reconstruction and Development (EBRD) is eyeing a potential investment in the Suez farm, Harry Boyd-Carpenter, the EBRD’s managing director for climate strategy and delivery, told EnterpriseAM earlier this week. Some 70-75% of the wind farm will be financed through loans, while the remainder will be self-financed, Asharq quotes its sources as saying. The project is expected to reach financial close by 4Q 2024.

REFRESHER- ACWA and Hassan Allam Holding signed a 25-year power purchase agreement (PPA) with the Egyptian Electricity Transmission Company (EETC) in June to develop the project under a build-own-operate framework. The project is expected to begin commercial operations by the end of 2026.