Germany’s export credit agency (ECA) Euler Hermes has provided cover for part of a US$1bn loan for nine onshore wind farms in Turkey.
Seven lenders, including commercial banks and development institutions, provided the facility to Enerji Üretim, part of Turkey’s Sabancı Holding conglomerate, for the development of the 750-megawatt (MW) Yeka-2 wind project.
Akbank, the German Investment Corporation, HSBC, JP Morgan, KfW Ipex-Bank, Proparco and the US Development Finance Corporation (DFC) participated in the deal, Sabancı Holding says in a statement.
Germany’s Enercon is supplying and installing 180 wind turbines for the project, which is slated for completion in early 2026, according to a separate statement from KfW-Ipex Bank. The lender says Euler Hermes is covering a US$400mn buyer’s credit.
Enerji Üretim says the funds will be used to finance nine “ongoing” onshore wind developments in the provinces of Çanakkale, Aydın and Balıkesir. The repayment period begins after a 1.5-year grace period and ends in 2034, the company says.
KfW-Ipex Bank, which says it is providing around US$125mn of the total financing, acts as ECA co-ordinator and agent.
The DFC says it is providing US$350mn of the financing, which it says will help Turkey meet rising energy demand, diversify its energy mix and cut its reliance on imported fuels. The institution says Turkey is one of its largest markets.
“This project is a milestone for DFC and a model for accelerating the energy transition,” the DFC’s deputy CEO Nisha Biswal says. “DFC is committed to driving the growth of clean energy infrastructure in Turkey and around the world to enhance energy security and advance sustainable economic growth.”
Kıvanc Zaimler, president of Sabancı Holding Energy Group, says: “Undertaking this investment will make a significant contribution to our country’s net-zero emission vision and to maintain energy security of Turkey.”
The entire Yeka-2 project has a total planned capacity of 1,000MW, and Enerji Üretim says it is currently seeking financing to build capacity for the remaining 250MW.
