Egypt to unlock EUR 54 mn debt swap from Germany: Germany has agreed to exempt Egypt from paying debts of EUR 54 mn after the German development bank KfW signed a debt swap agreement with Egypt’s international cooperation and electricity ministries as well as the Central Bank of Egypt, according to a statement from the German Embassy in Cairo. The money will instead be used to link the new 500 MW Ras Ghareb and the 500 MW Gulf of Suez wind farms to the national grid, the statement reads. The debt swap — which International Cooperation Minister Rania Al Mashat discussed with German officials in October — is the third tranche in the second phase of an ongoing program between the two countries.

The Gulf of Suez project: The Red Sea Wind Energy (RSWE) — a JV between Orascom Construction (OC), Japan’s Toyota Tsusho Corporation/Eurus Energy Holdings Corporation, and France’s Engie — achieved financial close for the 500 MW Gulf of Suez wind farm earlier in April. The USD 501 mn project will be financed by the European Bank for Reconstruction and Development (EBRD), the UN’s Green Climate Fund, the Japan Bank for International Cooperation (JBIC), Sumitomo Mitsui Banking Corporation, the Norinchukin Bank, and Société Générale.

The Ras Ghareb farm: The USD 709 mn Ras Ghareb wind farm will be built by Amunet, a local special purpose vehicle that is 60% owned by Al Nowais subsidiary AMEA Power and 40% owned by Japan’s Sumitomo Corporation. Construction of the project began earlier in March and is expected to be completed by 2025.

More debt swaps in the pipeline? The news comes days after Egypt’s President Abdel Fattah El Sisi called on developed nations to increase debt swaps and other innovative forms of green finance to help developing countries pay for the green transition.