European Bank for Reconstruction and Development (EBRD) makes its first direct equity investment in Turkey's energy sector, according to EBRD's press release on Tuesday.
The bank will pay $100 million for a 20 percent stake in the renewable energy subsidiary of Akfen Holding, one of Turkey's biggest infrastructure companies.
"We are pleased to enter into a strategic partnership with Akfen to scale up the development of renewable sources of energy in Turkey. We already have a strong relationship with Akfen in a number of sectors and look forward to success as partners in the energy sector. Turkey has set itself ambitious targets. We will be part of the solution," said Nandita Parshad, EBRD director for power and energy utilities.
According to the press release, Akfen Renewable Energy's field of work, to be known shortly as AkfenRE, includes operational hydro and solar power plants and several wind, solar and hydro projects under development, with a total operational capacity of 210 megawatts.
The bank's investment will help AkfenRE become one of the largest renewable energy companies in Turkey.
"Energy investments play a key role for our company’s growth and the EBRD funds will be used to strengthen our activities in the area of renewables. We are in the process of developing a balanced portfolio in the medium to long-term with sustainable generation in all segments of the energy sector," Suha Gucsav, CEO of Akfen Holding said.
To achieve this goal, Gucsav said that the company plans to continue diversifying by investing in hydro, wind and solar projects and added that the shareholder agreement with the EBRD is one of the main steps for this process.
The EBRD has invested €2.8 billion to support Turkey's sustainable energy projects and is still working with the Turkish Ministry of Energy and Natural Resources to develop Turkey's first National Renewable Energy Action Plan.
By Ugur Ertas