The European Bank for Reconstruction and Development (EBRD) is considering providing a senior loan up to the equivalent in Turkish lira (TL) of $100 million to Osmangazi Elektrik Dagitim AS (OEDAS), the electricity distribution company of the Osmangazi region, which covers inner western Anatolia in Turkey, the Bank announced on Wednesday.
The Osmangazi region in Turkey includes five provinces; Afyonkarahisar, Bilecik, Eskisehir, Kutahya and Usak.
Zorlu Energy through its subsidiary, Zorlu Osmangazi owns OEDAS and serves around 2.6-2.7 million people in 194 towns and 1,596 villages.
The loan is part of a financing package worth the TL equivalent of $710 million, the Bank said, adding that the TL equivalent of $360 million was provided in 2017 by Zorlu Energy in form of equity to acquire OEDAS and Osmangazi Elektrik Perakende Satis AS (OEPSAS), the electricity retail firm.
The rest of the package will be provided in debt financing, in local currency, by a group of international financial institutions, including the EBRD, and commercial banks, the Bank said.
The EBRD loan will finance the capital expenditure investments required by Turkey's Energy Market Regulatory Authority for the five-year regulatory period between 2016 and 2020.
These include the upgrade, modernization and expansion of the distribution network in the Osmangazi region.
By Ebru Sengul
Anadolu Agency
energy@aa.com.tr
