Turkey’s budding renewable energy sector has attracted another major financial boost, with two of the leading multi-lateral banks picking up stake in a private renewable energy developer.
The European Bank for Reconstruction and Development (EBRD) and International Finance Corporation (IFC) have picked up a stake in Akfen Renewable Energy, a holding of the Akfen Holding. Both the banks have picked up a 16.67% stake in the company each with an investment of $200 million.
Akfen Renewable Energy has an operational renewable energy capacity of 211 MW. The operational projects are based on solar and hydro power technology, with several others under development. The funds raised from this stake sale will be used by the company to finance the development of some of these projects.
EBRD has a substantial exposure to the renewable energy sector in Turkey. It recently approved a $110 million loan for construction of renewable energy and resource efficiency projects in Turkey. The loan will be disbursed through Akbank.
The financing will benefit renewable energy and resource efficiency projects in Turkey, including solar, hydropower, wind, geothermal, waste-to-energy, and energy efficiency, as well as water-saving and waste-minimization projects.
The investment was part of EBRD’s Mid-size Sustainable Energy Financing Facility (MidSEFF), now totaling €1.5 billion. So far, 47 projects have been financed through 7 Turkish banks, helping to build over 800 MW of additional renewable energy capacity.
EBRD also provided $180 million for renewable energy projects in Turkey last year. The funds were disbursed through Garanti Bank and Yapi ve Kredi Bankasi, and project developers will be provided loans in range of €10 million to €40 million.
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