EBRD, FMO lends 80 million dollars to Borusan Energy

The European Bank for Reconstruction and Development (EBRD) said on Wednesday that together with the Netherlands Entrepreneurial Development Finance Company (FMO) it is extending an $80 million (70.5 million euro) financing package to Turkish renewable energy company Borusan EnBW Enerji.

The long-term loan will help Borusan EnBW Enerji strengthen its balance sheet and reinforce its financial sustainability for further portfolio expansion, the bank said in a statement.

The financing package is split equally between the two lenders under the EBRD’s A/B loan syndication structure, a financing model whereby lenders participate in an EBRD loan on market terms, with the EBRD remaining the lender of record for the entire loan amount, the statement read.

“Borusan EnBW Enerji, which has been a prominent representative of the renewable energy sector since its establishment, will ensure the continuity of its clean energy investments through its strong cooperation with the EBRD. […] This partnership will support us in our corporate sustainability strategy, focusing on climate, people and innovation,” Borusan EnBW Enerji’s CEO Enis Amasyali said in the statement.

In 2020, the EBRD provided a $37 million loan to Borusan EnBW Enerji to finance the expansion of the company’s Kiyikoy wind farm, in the northwestern part of Turkey.

Borusan EnBW Enerji is a joint venture between German power utility Energie Baden-Wurttemberg (EnBW) and Turkish holding company Borusan. The company has the largest wind portfolio in Turkey. It runs nine wind farms, two solar plants and a hydro-electrical power plant, with a total installed capacity of 720 MW.