Company to add up to 30 gasoline stations to its network
The European Bank for Reconstruction and Development (EBRD) is supporting Balpet Petrol Ürünleri Taşımacılık Sanayi ve Ticaret A.Ş., a fuel distribution and logistics company in Turkey, with a financing package of up to €10 million.
The EBRD loan will finance Balpet’s TL 40.4 million (€12.6 million) investment plan for 2016 and 2017. The first tranche of €3.6 million of the loan has already been committed.
The company, established in 2003, aims to add and upgrade up to 30 gasoline stations of its network across Turkey. The stations are expected to be transferred to Balpet from existing major distribution brands and will be operated under dealership agreements.
The firm will also refurbish its existing stations to improve the quality and efficiency of service across the network.
The EBRD will also help Balpet to further advance its environmental health and safety standards and enhance energy efficiency.
Jean-Patrick Marquet, Head of EBRD operations in Turkey, said: “This is the EBRD’s first investment in a fuel distribution company in Turkey. We are pleased to support this medium-sized firm, boosting competition and raising the bar in terms of energy efficiency as well as environmental health and safety practices.”
Owned by the Balkan family, Balpet operates a network of over 360 gasoline stations, the majority of which are third-party dealerships. The company holds a market share of about 1.5 per cent of fuel sales in Turkey and it aims to increase this.
Selahattin Balkan, Chairman of Balpet, said: “We are honoured that our transaction will be the EBRD’s first project in the fuel distribution sector in Turkey. We will continue to improve Balpet’s corporate governance practices and aim to increase our market share in the country.”
The EBRD’s support to Balpet is part of the Bank’s efforts to address challenges in the Turkish energy sector, including by promoting the expansion of medium-sized operators in a highly competitive environment.
The Bank started investing in Turkey in 2009 and currently operates from offices in Istanbul, Ankara and Gaziantep.
To date, it has invested over €7 billion in the country through more than 180 projects in agribusiness, energy, finance, industry and infrastructure. The EBRD has also mobilised about €16 billion for these ventures from other sources of financing.