Credit support of Eur 84 millions from TSKB to Akenerji’s renewable energy portfolio

TSKB (Turkish Industrial Development Bank), the first private capital investment and development bank of Turkey supporting investment projects oriented to sustainable development has provided a total of 847 millions Euros (USD 79 millions and € 28 millions) financing for 3 Hydroelectric Power Plants to be realized by MEM Enerji Elektrik Üretim A.Ş (MEM Energy Power Generation, Inc), subsidiary of Akenerji Elektrik Üretim A.Ş (Akenerji Power Generation, Inc). Total investment value of power plants is € 120 millions.

Credit agreement is signed in a ceremony held on December 22, 2009 by Halil Eroğlu, General Manager of TSKB and Ahmet Ümit Danışman, General Manager of Akenerji.

Bulam (Adıyaman), Himmetli (Adana) and Gökkaya (Adana) Hydroelectric Power Plants, to be executed by the financing of TSKB, “Turkey’s Environment-Friendly Bank”, are planned to generate nearly 240 millions kWh energy per year. An approximate of 160 thousands of carbon emission per year will thus be prevented when these power plants, on current investment stage, will be operational.

Ahmet Ümit Danışman, General Manager of Akenerji mentioned that Turkey is objecting to increase its installed power capacity to meet 8% planned yearly power demand increase and added: “As Akenerji, we continue our investments without slowing down due current financial crisis. We have determined our growth strategy as to increase the variety of resources on power generation and to focus on environment-friendly investments. Ayyıldız Wind Power Plant at Balıkesir with a power capacity of 52 millions per year has come operational as September 2009, while accelerating our investments based on renewable energy. We continue our investments in parallel to our goal to convey our current 373 MW installed power capacity to 3,000 MW within 5 years, by introducing alternatives in renewable energy”.

Halil Eroğlu, General Manager of TSKB emphasized that both environment and a sustainable future are crucial issues for them and said: “We are ready to finance every investment which would support sustainable development”.

Eroğlu continued his speech and added: “As TSKB we are the first bank to initiate ‘credit with environment criteria’ in Turkey. We take into account environmental risks of institutions and projects we are financing within the scope of sustainable banking criteria we have adopted to provide economic growth without harming the environment. Having considerably widened our energy portfolio within the last 5 years, we signed the largest number of projects with the improvement of our energy portfolio and also with the environment and renewable energy loans we supplied. This number has reached to 86 and power level out of these projects to nearly 2,283 MW. This figure is 15% of Turkey’s total renewable energy installed power and 2% of total generation capacity. There will be a decrease of nearly 4.7 millions ton, in other words 2% of carbon emission when all these projects will get operational. The added value we have created through such contribution attracts significant interest and support internationally; we are securing international loans from World Bank, European Investment Bank, KfW, AFD (French Development Agency), European Council Development Bank to support these projects. We had recently received a loan of € 150 millions from European Investment Bank, to be used for the financing of other projects to be realized in Turkey which would affect the environment in a positive way in terms of renewable energy, energy efficiency, prevention of environmental pollution. We are glad to sign such collaboration agreement with Akenerji, one of leading power generation companies of Turkey.”