EBRD to allocate loan for Turkey’s renewable energy sector

Economy News 20 January 2022 14:24
TurkicWorld Mustafa Askerbeyli
EBRD to allocate loan for Turkey’s renewable energy sector

The European Bank for Reconstruction and Development (EBRD) will support Turkey’s renewable energy sector, as jointly with the Netherlands Entrepreneurial Development Finance Company, FMO, it is set to allocate $80 million financing package to Borusan EnBW Enerji A.S., TurkicWorld reports with reference to EBRD.

Borusan EnBW Enerji A.S. ‒ a joint venture between German utility Energie Baden-Württemberg (EnBW) and Turkish conglomerate Borusan Holding, runs nine wind farms, two solar plants and one hydro-electrical power plant, with a total of 720 megawatts (MW) of installed capacity. It has the largest wind portfolio in Turkey.

The financing package is split equally between the two lenders under the EBRD’s A/B loan syndication structure, a financing model whereby lenders participate in an EBRD loan on market terms, with the EBRD remaining the lender of record for the entire loan amount.

The long-term loan will strengthen Borusan EnBW Enerji’s balance sheet and reinforce its financial sustainability for further portfolio expansion.

Borusan EnBW Enerji will also develop and implement a new accredited course for young people to acquire the skills required in the renewable energy sector. It has further committed to stepping up support for women, who remain underrepresented in the industry and Turkey’s labour market more broadly.