Deutsche Bank, HSBC and KfW arrange €3.5bn finance for Egypt power plants

12 April 2016 (Last Updated April 12th, 2016 18:30)

A consortium comprising Deutsche Bank, HSBC and KfW IPEX-Bank, has structured and arranged more than €3.5bn in financing for three combined cycle power plants in Egypt.

A consortium comprising Deutsche Bank, HSBC and KfW IPEX-Bank, has structured and arranged more than €3.5bn in financing for three combined cycle power plants in Egypt.

The debt capital is being raised by a group of 17 international banks.

The Beni Suef, Burullus and New Capital combined cycle plants will be built at a cost of approximately €6bn.

With a combined capacity of 14.4GW, the projects will boost Egypt's electricity production by 50%.

When complete in 2018, the combined cycle power plants will become the largest of their kind in the world.

"This funding will make it easier to launch not yet established renewable energy technologies on the market and help overcome obstacles to investment."

Siemens will supply H-Class gas turbines for these Egyptian high-efficiency power plants.

Last November, the loan agreement was signed for the first project in Beni Suef, while the financial close for the other two power plants, Burullus and New Capital was achieved in March.

KfW has also agreed to provide €220m in financing for renewable energy and eco-housing projects in Mexico.

KfW executive board member Dr Norbert Kloppenburg said: "With this funding, KfW is supporting Mexico in its ambitious goal of lowering greenhouse gas emissions by at least 22% from 2000 to 2030 and, at the same time, improving its energy supply.

"This funding will make it easier to launch not yet established renewable energy technologies on the market and help overcome obstacles to investment."

KfW has agreed to provide two loans of €88m and €80m to Mexican development bank Banco Nacional de Comercio Exterior (Bancomext) to finance wind, small hydro, biomass and solar power projects.

The bank will give a third loan of €50m to Sociedad Hipotecaria Federal (SHF) for phase 2 of the EcoCasa programme.

To date, nearly 12,000 'green' housing units have been built for low and middle-income households under the programme, which is now being renewed.