USD 75 million subscription in the USD 750 million, 5.5-year green Eurobond issued by Aydem Yenilenebilir Enerji A.S. (the "Company"), a leading renewable energy company in Turkey.
This is the first green bond issued by the Company, underpinned by its newly developed Green Financing Framework aligned with Green Bond Principles 2021 and Green Loan Principles 2021, as validated by an independent second party opinion.
The Eurobond proceeds will be used to refinance all existing company debt and for general corporate needs.
ETI score: 64
ETI score: 64
The Transition Impact arises from the Green and Inclusive qualities:
Green - The proposed investment is in an independently certified Green Eurobond.
Inclusive - The Company will contribute to the revision of Early Childhood Care and Education regulations and develop and implement an internship programme focused on women, to provide accredited green skills across predominantly smaller and more remote cities in Turkey.
AYDEM YENILENEBILIR ENERJI AS
The Company is a private Turkish renewable energy company with a 1 GW operational portfolio of predominantly hydro (84% of capacity) and wind power plants (15% of capacity) (remainder: 1% biogas / geothermal), and is one of the largest privately owned IPPs in Turkey. Currently, the Company is majority owned by the Aydem Group with the remainder listed on the Borsa Istanbul.
EBRD Finance Summary
Total Project Cost
The Bank's additionality derives from (i) the conditionalities obtained by the Bank under the Framework Agreement to enhance inclusion and environmental standards, and (ii) supporting the Company's access to the international capital markets in the context of uncertain market conditions.
Environmental and Social Summary
The Project is Category B under the 2019 Environmental & Social Policy. This is a Green Bond capital markets transaction and ESDD has been undertaken by way of publically available information, the independent Green Bond certification report and review of information previously provided by the Company. The independent report confirms that the Green Bond Principles have been met and therefore no further due diligence is required.
Notwithstanding, the Company and their advisors have previously engaged with EBRD to enable a comprehensive Environmental & Social Due Diligence ("ESDD") process to be completed. ESDD confirmed a good level of E&S capacity and capability and that the Company's portfolio of wind and hydropower assets are broadly managed in accordance with EBRD's Performance Requirements ("PRs"). Overall, the ESDD confirmed that the Company has the institutional capacity to implement the Bank's PRs.
ESDD concluded that the Company has taken active measures to go beyond minimum requirements of achieving compliance with national requirements and has aligned management systems and procedures with good international practice. None of the portfolio assets assessed are located in sensitive areas with respect to biodiversity or human receptors. Furthermore, ESDD concludes that no material non-compliances with EBRD's Performance Requirements have been noted. An ESAP has been agreed to confirm continued adoption of good industry practice and continuous improvement. The inclusion of an ESAP goes beyond standard practice for GreenBond transactions and demonstrates the Company's willingness to continue to commit to good E&S governance.
The ESAP includes action items for the Company to continue to build the capacity of the Company's E&S team; adopt metrics and KPIs for achieving good international practice; and developing a number of procedures which are not covered under national requirements and have yet to be adopted in full. The ESAP commits the Company to the disclosure of E&S information in line with the 2019 ESP and the EBRD's hydropower projects Guidance Note. The Company will also strengthen its overall ESG and climate reporting in line with EU recommendations on climate related information disclosure.
Part of the bond proceeds will be used for general corporate needs, including potentially to further grow the renewable energy generation portfolio. Through the involvement of EBRD, the Company has agreed to develop a procedure for the screening and appraisal of all potential and new projects to ensure that any future assets are designed and operated in line with the PRs. In addition, the Company has agreed to regularly review the performance of the existing portfolio, and any additional assets that may be added, through the life of EBRD's involvement. Should the Company develop any new projects, these will be undertaken in line with the Banks requirements.
Technical Cooperation and Grant Financing
A Gender Inclusive TC, with funding expected from an international donor or the EBRD's Shareholder Special Fund will fall under the pre-approved Gender and Economic Inclusion Framework and will focus on supporting policy dialogue activities on early childhood care and education.
Company Contact Information
+90 258 242 27 76
Adalet Mahallesi Hasan Gonullu Bulvari No: 15/1 Merkezefendi Denizli Turkey
PSD last updated
09 Aug 2021
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Independent Project Accountability Mechanism (IPAM)
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