COUNTRY | Turkey
REGION | Europe
SECTOR | energy
QII Principles | Principle 1 Sustainable Growth & Development, Principle 4 Building Resilience, Principle 5 Social Considerations
QII Sub-Principles | 1: SDGs, 1: Paris Agreement, 3: Weather, 3: Emissions, 4: Resilience, 5: Gender, 6: Financial & debt sustainability
Overview
Senior unsecured loan up to USD 125 million in Turkish Lira
Parties involved: Enerjisa Enerji A.S., one of the leading private utility players in Turkey, serving nearly a quarter of Turkey’s population.
Context: The financing is provided in anticipation of adverse impact from the Covid-19 crisis which is likely to reduce its cash flows from operations as well as availability of debt financing in Turkey thus creating potential funding gap for Enerjisa Enerji’s investment plan amounting to c. USD 400 million for 2019-2020.
Aim(s) of the project: The proceeds of the financing are to be used for expansion and modernisation of three regional electricity distribution networks of Enerjisa Enerji during 2020.
Timeline
Electricity distribution companies in Turkey implements capex investments in line with capex implementation plan announced by the regulator at the end of 5-year implementation periods. Enerjisa Enerji continues to implement 3rd regulatory period capex plan which is expected to be completed by the end of 2020.
Relevance to QII
Distribution companies have to comply with the investment program of the regulator. The proceeds of the loan will be used to complete 2019-2020 electricity network CAPEX and enable the company to reach investment targets helping the vital infrastructure investments required for economic development.
The capex investments made across the distribution networks will lead to a reduction of technical losses and improved network operation, resulting in CO2 savings. An equal opportunities action plan is developed through a dedicated technical cooperation program with the help of EBRD. Implementation of EO action plan will promote women’s access to economic opportunities.
Benefits
The investment will enable expansion and modernisation of electricity network in Enerjisa regions and facilitate integration of distributed energy generation with the addition of small solar and wind projects.
Network investments are expected to improve efficiency resulting in direct CO2 savings.
The financing promotes women’s access to economic opportunities in a male-dominated sector through an equal opportunities program.
Metrics
Monitoring benchmarks are determined for two main transition impact qualities (i.e. green and inclusive). The benchmarks are monitored annually and Enerjisa Enerji is expected to reach determined target levels within a certain period. Benchmarks include but not limited to increase in the number of women, reduction in network losses, annual CO2 savings.
Name of Institution
European Bank for Reconstruction and Development
Website URL