The European Bank for Reconstruction and Development (EBRD) and the Netherlands entrepreneurial development finance company FMO, are extending a financing package to Borusan EnBW Enerji in Turkey.
The US$80m (€70.5m) financing package is split equally between the two lenders under the ERBD’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.
The JV between EnBW and Turkish conglomerate Borusan Holding runs nine wind farms, two solar plants and one hydro-electrical power plant, with a total of 720MW of installed capacity.
Its wind portfolio is the largest in Turkey.
Borusan EnBW Enerji also intends to 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.
EBRD Director of Energy Eurasia Aida Sitdikova said: “To advance its green agenda and meet its commitments under the Paris Agreement, Turkey needs strong, experienced renewable energy investors on a sustainable financial footing, such as Borusan EnBW Enerji.
“The EBRD is delighted to consolidate its partnership with this Turkish-German venture and enable it to step up the delivery of green sources of energy.”
In 2020, EBRD provided a loan of US$37m to finance the expansion of the Kiyikoy wind farm (pictured) in Turkey’s northwest.
Borusan EnBW Enerji chief executive Enis Amasyalı said: “Borusan EnBW Enerji, which has been a prominent representative of the renewable energy sector since its establishment, will ensure the continuity of its clean energy investments through its strong cooperation with the EBRD.
“We will also initiate an inclusion project to increase green-collar employment in the sector, particularly for female students.
“This partnership will support us in our corporate sustainability strategy, focusing on climate, people and innovation.”
The EBRD is a major institutional investor in Turkey and has invested more than €14.7bn through 361 projects in the country’s economy to date, mostly in the private sector.