Cairo – Mubasher: Orascom Construction Limited (OC) on Monday announced that its consortium for a build-own-operate (BOO) 250-megawatt (MW) wind farm in Ras Ghareb, Egypt has reached a “financial close”.
The consortium comprises OC, France’s Engie, and Japan’s Toyota Tsusho Corporation/Eurus Energy Holdings Corporation.
This wind farm is considered the first renewable energy project of its “kind and size in Egypt,” OC said in a statement, adding that upon the completion of the project’s construction, the consortium will operate and maintain the wind farm under a 20-year Power Purchase Agreement (PPA) with the Egyptian Electricity Transmission Company.
“Non-recourse project financing is provided by The Japan Bank for International Corporation (JBIC) in coordination with Sumitomo Mitsui Banking Corporation and Société Générale under a Nippon Export and Investment Insurance (NEXI) cover,” OC added.
Meanwhile, the Commercial International Bank – Egypt (CIB) will act as the working capital bank, while Morocco’s Attijariwafa Bank will provide an equity bridge loan.
OC has a 20% stake in the wind farm.
In late November, MubasherTrade Research adjusted its price target (PT) for OC’s stock on the Egyptian Exchange (EGX) to EGP 139.39 per share from EGP 140.31 previously and downgraded its recommendation to 'sell/moderate risk' from 'buy/moderate risk' due to the company’s cancellation of 1 million treasury shares.
As for the company’s stock on Nasdaq Dubai, MubasherTrade Research adjusted the stock’s PT to $7.88 per share from $7.82 and downgraded its rating to 'hold/moderate risk' from 'buy/moderate risk’.
Also in November, Orascom Construction announced that it had signed $1.54 billion in contracts across the Middle East and North Africa (MENA) and the US during the first nine months of 2017.
