Overview

Bank of China provides EUR 30 million loan to Turkcell to finance its solar power plant investments

Commitments (Constant USD, 2023)$32,438,059

Commitment Year•2023Country of Activity•TurkeyDirect Recipient Country of Incorporation•TurkeySector•EnergyFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: Aug 11, 2023

First repayment (originally scheduled): Aug 10, 2024

Last repayment (originally scheduled): Aug 9, 2028

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Commercial Banks

Bank of China (BOC)

Receiving agencies

Private Sector

Turkcell İletişim Hizmetleri A.Ş. (Turkcell)

Implementing agencies

Private Sector

Turkcell İletişim Hizmetleri A.Ş. (Turkcell)

Loan description

Bank of China provides EUR 30 million loan to Turkcell to finance its solar power plant investments

Grace period•1 yearsGrant element•8.6642%Interest rate (t₀)•6.281%Interest type•Variable Interest RateLoan tenor•3-month rateMaturity•5 years

Narrative

Full Description

Project narrative

On August 11, 2023, Bank of China signed an EUR 300 million loan agreement with Turkcell İletişim Hizmetleri A.Ş. (“Turkcell”) — the largest (private) mobile phone operator in Turkey — to finance its solar power plant investments. Turkcell aims to draw 65% of its electricity needs from renewable sources by 2026. It plans to reach 100% by 2030 and become net carbon neutral by 2050. The loan carries a 5-year maturity, a 1-year grace period, and an annual interest rate of 3-month EURIBOR plus a 2.5% margin. As of September 30, 2023, Turkcell had utilized (borrowed) EUR 9.838 million under the EUR 30 million loan.

Staff comments

1. In 2020, Turkey Wealth Fund (TWF), acquired 26.2% of the shares of Turkcell İletişim Hizmetleri.