Project Financing for Onshore Wind Power Generation Project in Saudi Arabia
Supporting Overseas Business Expansion of Japanese Companies for Decarbonized Society

• Region: The Middle East
• Infrastructures
• Overseas Investment Loans
• Project Finance

1. The Japan Bank for International Cooperation (JBIC; Governor: HAYASHI Nobumitsu) signed a loan agreement^*1 in project financing^*2 amounting up to approximately USD152 million (JBIC portion) with RIYAH AL SAHIL COMPANY (AL SAHIL) for the Yanbu onshore wind farm project. AL SAHIL is based in the Kingdom of Saudi Arabia and invested in by Marubeni Corporation and Abdul Aziz Al Ajlan Sons Co. for Commercial and Real Estate Investment – Ajlan & Bros. The loan is co-financed with Sumitomo Mitsui Trust Bank Limited, Standard Chartered Bank Limited, and Bank of China, bringing the total co-financing amount to approximately USD305 million.
     
2. In this project, AL SAHIL will build, own, and operate a 700 MW onshore wind farm in Yanbu, Al Madinah Province, Saudi Arabia. AL SAHIL will also sell the electricity generated by the wind farm to Saudi Power Procurement Company for a duration of 25 years. This loan, extended by JBIC for an independent power producer (IPP)^*3 renewable energy project in Saudi Arabia, follows the loans provided for the Rabigh solar power generation project^*4, as well as for the Al-Ghat and the Waad Al Shamal onshore wind farm projects^*5.
     
3. In the Infrastructure System Overseas Promotion Strategy 2030, approved by the Ministerial Meeting on Strategy relating to Infrastructure Export and Economic Cooperation in December 2024, the Japanese government views social transformations the world is facing, such as green initiatives and decarbonization, as opportunities for growth. It has set forth a vision to address global challenges, including climate change, and has also established a policy of supporting the overseas development of high-quality infrastructure. The Seventh Strategic Energy Plan, approved by the Cabinet in February 2025, set the goal of helping to achieve global decarbonization by utilizing various Japanese technologies tailored to the resource endowment, industrial structure, and energy mix of each country. The loan is in line with these policies of the government and will support long-term overseas infrastructure projects involving the Japanese company, which is engaged in renewable energy initiatives both domestically and internationally. By further developing the expertise of Japanese companies, it will contribute toward maintaining and improving the international competitiveness of Japanese industry, and ultimately toward the enhancement of Japan’s economic security.
     
4. This project is part of the National Renewable Energy Program (NREP), which is supervised by the Ministry of Energy of Saudi Arabia, aiming to achieve approximately 50% of its total power generation capacity from renewable energy and energy storage systems sources by 2030, subject to electricity demand growth. The loan conforms with the energy transition policy of the government. Moreover, Saudi Arabia is one of the world's leading producers of oil and natural gas, and it is a key exporter of oil to Japan. The two countries plan to strengthen their partnership in energy and other sectors, including the signing of a memorandum of understanding on establishing the Strategic Partnership Council in February 2025. The loan is expected to contribute toward energy and economic security by further strengthening the multilayered economic ties between the two countries.
     
5. As Japan’s policy-based financial institution, JBIC will continue to provide financial support to assist Japanese companies in the overseas expansion of their infrastructure businesses toward decarbonization by drawing on its various financial facilities and schemes for structuring projects and by performing its risk-assuming function.
     

Note

1. *1 
   The loan agreement was signed on November 27, 2025.
2. *2 
   Project finance is a financing scheme in which repayments for a loan are made solely from cash flows generated by the project.
3. *3 
   An IPP (Independent Power Producer) is an independent producer of electric power who builds and operates power facilities, and generates electric power available for sale.
4. *4 
   See Press Release on March 22, 2021.
5. *5 
   See Press Release on December 19, 2024.