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EBRD finances expansion of Turkey’s Enerjisa Enerji

By Olga Rosca

EBRD finances expansion of Turkey’s Enerjisa Enerji

  • EBRD loan equivalent to US$ 100 million in Turkish lira to Enerjisa Enerji
  • One of the country’s leading utilities expanding its distribution network
  • Newly introduced benchmark TLREF to serve as reference rate

The EBRD is supporting further improvements to Turkey’s electricity network with a financing package worth US$ 100 million in Turkish lira extended to Enerjisa Enerji, one of the country’s largest utilities. The loan will finance the company’s ongoing investment programme as agreed with the market regulator.

The landmark transaction will be the first EBRD loan linked to the new Turkish Lira Overnight Reference Rate (TLREF) benchmark, which is expected to become the reference rate for corporate lending in Turkey.

The TLREF is a new risk-free rate, developed by the government, regulator, Borsa Istanbul and other market participants with advice from the EBRD Treasury. The transparent and reliable benchmark is a step forward in the development of the local capital market and in line with the EBRD’s efforts in Turkey.

Enerjisa Enerji is providing electricity distribution and retail in Turkey and currently serves 21 million people. The company is a joint venture between Sabanci Holding and E.ON, each holding 40 per cent and the remaining 20 per cent is a free float on Borsa Istanbul.

Under the loan agreement the EBRD and Enerjisa Enerji will also cooperate to advance equal opportunities in the power sector, with a focus on supporting women’s access to employment in the sector.

“We are very pleased to expand our relationship with Enerjisa Enerji, which we see as a flagship company in the Turkish power sector, as illustrated by this transaction with the new TLREF benchmark which will support the development of the Turkish capital market,” said Aida Sitdikova, EBRD Director of Energy Eurasia.

Michael Moser, CFO of Enerjisa Enerji, added: “As leader in the Turkish energy market, Enerjisa Enerji is happy to contribute again to the development of financial instruments supporting corporations in Turkey. After the issuance of first-of-a-kind CPI-linked corporate bonds, Enerjisa Enerji has now completed its first corporate loan linked to the new TLREF, which will deepen this benchmark. The EBRD financing will be used for the improvement of electricity infrastructure, and for sustainable and high-quality energy supply and technology investments. We are delighted to cooperate and expand our relationship with the EBRD, one of the strongest supporters of Turkey’s private sector, in this landmark transaction.”

The EBRD is a leading institutional investor in Turkey and has invested almost €12 billion in 302 projects in the country since 2009. The overwhelming majority of EBRD investments are in the private sector.

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