Below please find the press release by Enerjisa on this loan
Enerjisa Uretim signed the largest Sustainability-linked Loan Deal in Turkey!
Enerjisa Uretim signed a 650-million-Euro worth sustainability linked loan agreement with 7 banks. Strengthening its already concrete financial statement, the company both reduced the total amount of debt with this contract provided great support to its renewable energy investments that it will take over in the following periods with the agreement. Ihsan Erbil Bayçöl, CEO of Enerjisa Uretim, stated; “Last year, we got the opportunity to increase our total generation capacity to 4,107 MW with the capacity that we were awarded in the second Renewable Energy Resources Zones (YEKA) tender. We will continue our investments and activities ‘with the purpose of creating a sustainable value’ by reassuring all of our stakeholders”.
Enerjisa Uretim, the leading power generation company in Turkey, signed a 650-million-Euro worth “Sustainability Linked Loan Agreement” with 7 large banks. As part of the Agreement, Enerjisa Üretim will benefit from the Sustainability-linked Loan Mechanism, one of the sustainable debt instruments which has not lost any momentum despite the pandemic with a total volume exceeding 1.5 trillion USD in August. Enerjisa Uretim also announced that sustainability works in two major fields will be accelerated as part of the agreement. The company made a commitment to significantly increase the share of renewable energy within its power investment portfolio and will be working towards reaching the best international standards in gender equality. The agreement, which will contribute in the achievement of the company's goals for the forthcoming periods, strengthened the already concrete financial statement of Enerjisa Uretim more, also enabled Enerjisa to strengthen its provision by replacing long-term loans.
Seven banks including Akbank, Garanti BBVA, Turkiye Is Bankasi, HSBC, ING, TEB and Isbank AG, will offer financing in line with the requirements of Sustainability Linked Loan Mechanism. The agreement provides a new financial package towards realizing the strategic goals of the company despite decreasing the amount of loan by taking into account the balance of cash and foreign currency. Deciding on adapting its financial structuring in line with its operational structure and strategic targets, Enerjisa Uretim provided great support to its renewable energy investments that it will take over in the following periods with the agreement.
Concrete proof of confidence in energy markets
Signed by Akbank, Garanti BBVA, Turkiye Is Bankasi, HSBC, ING, TEB and Isbank AG, the finance package was considered by the financial world to be a concrete proof of the confidence in the Turkish renewable energy markets and particularly in Enerjisa Uretim.
Joint announcement made by the banks participating to the loan read as follows: "This agreement is a significant indicator of our confidence in Turkey and Turkish energy markets. It is a source of pride for us to see Enerjisa Uretim, the leading player in the sector, invest particularly in the renewable growth, while regularly generating cash today with its well-balanced financial statement”. Underlining the potential of Turkey particularly in wind and solar areas, banks stated that they were always interested in and would continue to support growth projects in renewable energy area.
Ongoing growth in renewable energy
İhsan Erbil Bayçöl, CEO of Enerjisa Uretim, made the following statement about the subject: "We are a leading company in the industry with our operational excellence works focusing on environmental and social performance and our continuous development culture. Enerjisa Uretim has a high generation performance as well as a strong cash flow. Today, we continue generating for uninterrupted power supply with our 21 power plants, 56% of which are consisting of national and renewable resources. Last year, we were awarded 500 MW capacity in the second Renewable Energy Resources Zones (YEKA) tender with our projects. Thanks to the wind power plants we will build in Aydın and Çanakkale regions, we gained the potential of increasing our total generation capacity to 4,107 MW as well as increasing the share of green investments within our portfolio even more. At Enerjisa Uretim, we attach utmost priority to sustain the increasing trend as well as achieving new investments in renewable energy area, which is also a strategic priority. We will continue our investments and activities ‘with the purpose of creating a sustainable value’ by reassuring all our stakeholders. I would like to thank all the banks that we have been in valuable collaboration with for their confidence in us during this growth journey.”
Strategic growth with a well-balanced financial statement
Having a strategic advantage with its portfolio diversity in power generation, Enerjisa Uretim will continue to contribute to the Turkish economy and security of supply in energy with the strength it gets from its shareholders and the confidence it has in the future of our country.
About Enerjisa Uretim Santralleri A.Ş.:
Enerjisa Uretim Santralleri A.Ş., a subsidiary of Sabancı Holding and E.ON, generates energy for a better future by respecting life with its portfolio having an installed capacity of approximately 3,607 MW generated by 12 hydroelectric generation, 3 wind power, 2 solar power, 3 combined natural gas cycle and 1 national lignite power plants. Being a leading primary dealer in over-the-counter (OTC) market and derivatives exchange with its trading volume exceeding 20 TWh, Enerjisa Uretim is the largest private sector power generation company in Turkey with its stable, large and flexible portfolio. With its sustainable, human- and operational excellency-oriented processes, Enerjisa Uretim contributes to the security of supply in Turkey and the competition in power trade.