Turkey's Akfen Renewable Energy signed agreement with six local and international banks on Wednesday for a $363 million loan to construct 327 megawatts of renewable energy capacity in various Turkish cities.
Speaking at the signing ceremony, Hamdi Akin, chairman of Akfen Holding, welcomed what he described is the biggest loan ever granted at a sitting for renewable projects in Turkey.
"It [the loan] is also qualified as Turkey's first 'green financing' in the energy sector," Akin said.
The total investment volume of the nine solar and four wind power plants amounts to $530 million, he said, adding that the company will spend $167 million in equity capital for these plants.
The European Bank for Reconstruction and Development (EBRD), German KfW IPEX-Bank, Garanti Bank, Turkey İs Bank, Vakifbank and Yapı Kredi Bank participated in providing the $363 million loan.
Akin said that thanks to these 13 new plants, the company, which currently has 253 megawatts of installed power capacity, will now increase this capacity to 574 megawatts.
Nine of Akfen Renewable Energy's solar plants of 85 megawatts will be installed in the cities of Konya, Amasya, Tokat, Van and Malatya.
The wind plants with 242 megawatts will be constructed in Canakkale and Denizli.
All the plants are expected to come online by 2020 with the aim to reach 1,000 megawatts of installed capacity by then, Akin said.
He shared that Akfen plans to hold a public offering for the company, but did not elaborate on the percentage the company would offer.
Both the EBRD and the International Finance Corporation (IFC) each hold a 16 percent share in the company.
Akfen Renewable Energy is a subsidiary of Akfen Holding, which operates in different sectors ranging from construction to energy.
By Nuran Erkul Kaya