Project Description
Up to USD 100 million senior loan with 9-year tenor (the "Loan") to Adnan Polat Enerji Yatirimi A.S. (the "Borrower", the "Company" or "APEY"), a renewable energy company 50/50 owned by the Turkish group Polat Holding A.S. ("Polat Holding") and Maxis Girisim Sermayesi Portfoy Yonetimi A.S ("Maxis"), a subsidiary of Is Yatirim Menkul Degerler A.S. (together the "Sponsors").
Project Objectives
The proceeds of the Loan will be used to refinance the existing debt of the Borrower`s subsidiaries (the "Project"). The Project will enable new renewable energy investments of ca.200MW and potentially integrated energy storage facilities until 2025 by reducing APEY's debt exposure and thereby strengthening APEY's balance sheet.
Transition Impact
ETI score: 67
ETI score: 67
The Transition Impact arises from the Green and Inclusive qualities:
Green: (i) the proposed loan will replace facilities utilised on development of wind projects for a renewable energy producer (RES represents 100% of generation) and (ii) the transaction will help restructure the APEY group companies' balance sheet, thereby providing for additional financing headroom required to continue investing in renewable pipeline in the next five years.
Inclusive: The project is expected to enhance access to market-relevant skills and employment opportunities for women and young people by strengthening the capacity of the Company to improve the school-to-work transition of prospective renewable energy specialists.
Client Information
ADNAN POLAT ENERJI YATIRIMI AS
Adnan Polat Enerji Yatirimi A.S.
Adnan Polat Enerji Yatirim A.S. is a renewable energy company, owned by Polat Holding (50%) and Maxis (50%), with a total installed capacity of 695MW under two subsidiaries Erguvan RES (110MW) and Polat Enerji (585MW).
EBRD Finance Summary
USD 100,000,000.00
USD 100,000,000
Total Project Cost
USD 285,000,000.00
USD 285,000,000
Additionality
The Bank's additionality derives from (i) the Bank's involvement in the financing given the limited favourable funding sources available due to macroeconomic conditions, and (ii) promotion of gender inclusion standards.
Environmental and Social Summary
Category B (2019 ESP). Environmental and Social issues associated with the construction and operation of wind projects and hybrid solar projects on existing sites can have material impacts and a review is needed of the location and sensitivity of each site, baseline data and mitigation measures to avoid or reduce bird and bat impacts. The on-going ESDD has confirmed that none of the sites are located in sensitive areas or that the expansion of the existing renewables energy projects would trigger A category.
The ongoing ESDD has confirmed that the Company has the institutional capacity to implement the Bank's Performance Requirements and has in place various management systems, plans, procedures and associated capacities to appropriately manage the environmental and social impacts and risks associated with its activities.
The Company operates a number of renewables assets, namely wind power projects and one solar plant. The Company confirmed these are in-compliance with the national law and the Company has been implementing good industry practices. ESDD also reviewed future investment plans. These consist of wind, solar and hybrid solutions, which are not located in sensitive areas, and would not trigger A-category. The Company is undertaking robust monitoring and notably for avifauna and results have not indicated any material impacts on birds and bats. Based on the ESDD an ESAP will be developed incursive of commitments to comply with the Bank's PRs and development of appropriate studies as well as disclosure of Non-Technical Summaries on future projects.
The Company's HR policies and procedures are in line with Turkish legislation and largely with the EBRD's Performance Requirement (PR) 2. The Company is implementing best practices although some improvements are required with respect to improvement of OHS performance within the supply chain. The Company has used Korean suppliers for solar panels, which are not associated with human rights allegations. The Company also filled in questionnaire on its supply chain management policies and practices which show some level of control through contracting. ESAP includes actions towards strengthening this.
The Company is implementing a corporate ESAP agreed as part of previous loans. This will be reviewed and updated as appropriate based on the current ESDD.
The Company will be required to submit annual E&S reports to the Bank and provide NTS' on new projects under development as well as any ESDD reports. The Bank will monitor the implementation of the ESAP with planned monitoring visits.
The PSD will be updated upon the completion of the ESDD.
Company Contact Information
Kerim Feyzioglu
kerim.feyzioglu@polatenerji.com
+90 212 222 88 46
+90 (212) 213 66 39
Gursel Mah. Yanki Sk. Kagithane No :27B/8 Kagithane/Istanbul
PSD last updated
27 Jun 2022
Understanding Transition
Further information regarding the EBRD’s approach to measuring transition impact is available here.
Business opportunities
For business opportunities or procurement, contact the client company.
For business opportunities with EBRD (not related to procurement) contact:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com
For state-sector projects, visit EBRD Procurement:
Tel: +44 20 7338 6794
Email: procurement@ebrd.com
General enquiries
Specific enquiries can be made using the EBRD Enquiries form.
Environmental and Social Policy (ESP)
The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.
More information on the EBRD’s practices in this regard is set out in the ESP.
Integrity and Compliance
The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.
OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.
Access to Information Policy (AIP)
The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.
Specific requests for information can be made using the EBRD Enquiries form.
Independent Project Accountability Mechanism (IPAM)
If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).
IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.
Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM via email ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.
