Enerjisa obtains 1 billion Euro financing


Enerjisa Power Generation AS, a joint subsidiary of Sabanci Holding and Verbund, Austria's leading electricity provider, has signed a 1 billion Euro financing package for the first phase of the company's investment program.

This landmark transaction secures the generation of 12,000 gigawatt hours of electricity per year, potentially supplying 3.6 million consumers. This financing package was successfully arranged by IFC, a member of the World Bank Group, Akbank T.A.S., WestLB AG, together the Global Coordinators and European Investment Bank EIB.

This is the largest international financing package for a private Turkish company which will sell into Turkey's deregulated power market. Given the current market conditions, this financing sends a strong signal of confidence in Enerjisa, a Sabanci-Verbund joint venture, to become a leading private power generator in Turkey's liberalized electricity market.

The project will construct a portfolio of ten hydroelectric power plants in Seyhan, Ceyhan and Cambasi basins and one natural gas-fired thermal plant in Bandirma with total capacity of 1,920 megawatts.

Ahmet Dördüncü, Sabanci Holding CEO, stated: "Together with Verbund, our valuable partner, we are working very diligently on the energy sector since we aim to meet the electricity demands of the Turkish industry and consumers in a sustainable, competitive and environmentally friendly way."

Selahattin Hakman, Energy Group President of Sabanci and Chairman of Enerjisa, stated: "We want to thank all financing banks for sharing our confidence in the liberalization of the Turkish power market. Starting with this landmark financing package, we intend to have a 10 % share of the Turkish electricity market by 2015. With an installed capacity of more than 5,000 megawatt, we will help to overcome the supply bottleneck in this sector. Together with our partner Verbund, we aim at developing further generation, distribution and supply as well as wholesale/trading of electricity in Turkey. We are confident that a fast development of the liberalization in the Turkish power market, including the privatization of the distribution companies and the generation assets,  will make it possible for us to increase our contribution to overcome the upcoming supply-bottle-neck in this sector."

Michael Pistauer, CEO of Austria's leading electricity company Verbund: "Closing this excellent financing package in such a difficult financial market environment with such a strong bank club evidences the trust and confidence in Sabanci's and Verbund's strategic targets. Jointly we are aiming to develop a strong vertically integrated position in the Turkish power sector with a focus on state-of-the-art environmentally friendly power plants. We would therefore also like to thank all the participating Banks for building up with Sabanci, Verbund and Enerjisa a long term relationship in the promising Turkish power sector."

Shahbaz Mavaddat, IFC's Director for Southern Europe and Central Asia, said: "We are pleased to be catalysing significant private sector funding to help mitigate the shortage of electricity generation capacity which is a major impediment to industrial growth and economic development in Turkey and the region. With ten hydro plants and one natural gas plant, this project reflects IFC's commitment to promoting investments in renewable and clean energy."

Cem Mengi, Executive Vice President of Corporate Banking Division of Akbank: "Akbank, one of the leader banks at project financing and corporate credits in Turkey, is pleased to be Global Coordinators with IFC-WestLB-EIB and international banks for Enerjisa 1. Phase Projects. Enerjisa will be one of the leading generation company not only in Turkey but also in the region with its diversified portfolio, know-how and powerful partners. Akbank also would like to support environmental friendly and economic power plants projects like Enerjisa's other projects. In addition to Sabanci Holding's leadership target in energy sector, Akbank aims to be one of the leader banks at generation, distribution and privatization process."

Thomas D. Murray, WestLB AG Global Head of Energy stated: "We at WestLB are both proud and honoured to be part of this groundbreaking transaction, the Euro 1B Project Financing for Enerjisa. Proud because, together with our very capable counterparts at the IFC and Akbank, we successfully led what I believe to be the largest power Project Finance deal ever done in Turkey and a very big one by any country's standard. Honored because Sabanci and Verbund, two very successful blue chip companies, put their faith in us to deliver on one of their most important financings for their Joint Venture company, Enerjisa."

Alain Terraillon, European Investment Bank, Director, Head of Private Sector Lending in Turkey stated: "We are pleased to be supporting the largest ever private sector investment in new power generating capacity in Turkey. Turkey's status as an EU accession country makes it eligible for funding under the EIB's pre-accession facility and this project will help the country meet its future energy needs in a climate-friendly way."

IFC arranged a financing package of 463 million Euro, including senior and subordinated loans of 158 million Euro for its own account and jointly with WestLB arranged a 305 million Euro syndicated loan with a 12-year maturity. Mandated Lead Arrangers joining the B-Loan were KfW IPEX-Bank GmbH, Bank Austria Creditanstalt AG, Erste Bank der österreichischen Sparkassen AG, Raiffeisen Zentralbank Österreich AG, WestLB AG, and Société Générale. In addition, Akbank T.A.S. arranged parallel financing of 402 million Euro with a 12-year maturity with participation of National Bank of Greece and European Investment Bank "EIB" has jointed in this financing package with 135 million Euro.