The European Bank for Reconstruction and Development (EBRD) provided Turkey's electricity company Enerjisa Enerji with a financing package worth $100 million in Turkish lira equivalent, the bank announced late Thursday.
Enerjisa Enerji is a joint venture between Sabanci Holding and German E.ON, with each holding a 40% share while the remaining 20% are free float shares on Turkey's stock exchange, Borsa Istanbul.
As an electricity distribution and retail company, Enerjisa Enerji, serves around 21 million people in Turkey.
The EBRD's loan will finance the company's ongoing investment program including the improvement of grid infrastructure for sustainable and high-quality energy supply and technological investments.
"The transaction will be the first EBRD loan linked to the new Turkish Lira Overnight Reference Rate (TLREF) benchmark, which is expected to become the reference rate for corporate lending in Turkey," the statement said.
The TLREF is a new risk-free rate, developed by the government, regulator, Borsa Istanbul and other market participants with advice from the EBRD Treasury, the bank said.
"The transparent and reliable benchmark is a step forward in the development of the local capital market and in line with the EBRD’s efforts in Turkey," according to the statement.
Under the loan agreement, the EBRD and Enerjisa Enerji will also cooperate to advance equal opportunities in the power sector, with a focus on supporting women’s access to employment in the sector, the statement read.
The EBRD has invested almost €12 billion in 302 projects in Turkey since 2009, the majority of which were in the private sector.
€1 equals 6.59 Turkish liras
By Nuran Erkul Kaya