WestLB Co-Arranges Largest Financing Package in Turkey´s Private Power Sector
Acting as global coordinators, WestLB AG, the International Finance Corporation (IFC), a member of the World Bank Group, and Turkey´s Akbank T.A.S. have arranged a € 865 million debt package for Turkish power company EnerjiSA Power Generation AS, owned jointly by Haci Omer Sabanci Holding S.A. and Verbund Österreichische Elektrizitätswirtschafts-Aktiengesellschaft. The financing package is the largest international transaction for a private company in Turkey that will supply the country´s deregulated power market, and is to be increased to € 1 billion in the course of this year. The project will build ten hydroelectric power plants in the Cambasi, Ceyhan and Seyhan basins and a natural gas-fired thermal plant in Bandirma, with a total capacity of 1,900 megawatts. The first phase will develop the company´s capacity to generate 12,000 gigawatt-hours of electricity a year, potentially reaching 5.7 million consumers. The additional capacity will help meet Turkey´s incremental demand for power and ensure the provision of a reliable power supply over the long term.
WestLB played a leading role in this highly complex transaction on account of its project financing expertise and its unique knowledge of the Turkish power sector. Together with IFC, WestLB arranged a € 355 million loan facility with a 12-year maturity, which was syndicated on the EMEA banking market. In order to extend this longest-ever maturity on the Turkish power market, WestLB developed a financing structure tailored specifically to the requirements of the company and the project.
WestLB is the biggest German provider of project finance and ranks among the leading banks worldwide in the core energy and infrastructure sectors. In the past year alone, a total of 31 deals structured by WestLB were named “Deal of the Year” due to their innovative character.