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Overview

ICBC contributes to $600 million syndicated debt financing package to bolster the company’s balance sheet and facilitate a corporate reorganization to consolidate the company’s energy portfolio

Commitments (Constant USD, 2023)$66,660,000
Commitment Year•2023Country of Activity•TurkeyDirect Recipient Country of Incorporation•TurkeySector•EnergyFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Apr 1, 2023

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

  • Industrial and Commercial Bank of China (ICBC)

Cofinancing agencies

Intergovernmental Organizations

  • European Bank for Reconstruction and Development (EBRD)

Private Sector

  • Akbank T.A.Ş.
  • GarantiBank International N.V. (Garanti BBVA International (GBI))
  • Türkiye İş Bankası (İşbank)
  • Türkiye Sinai Kalkinma Bankasi [Industrial Development Bank of Turkey] (TSKB)

Receiving agencies

Joint Venture/Special Purpose Vehicles

  • Borusan EnBW Enerji Yatirimlari ve Uretim A.S.

Loan description

ICBC contributes to $600 million syndicated debt financing package to Turkish firm Borusan EnBW Enerji to bolster the company’s balance sheet and facilitate a corporate reorganization to consolidate the company’s energy portfolio in 2023

Interest type•Unknown

Narrative

Full Description

Project narrative

In April 2023, Borusan EnBW Enerji Yatirimlari ve Uretim A.S. (‘Borusan EnBW Enerji’) -- a special purpose vehicle and joint venture of Turkey’s Borusan [50% ownership stake] and Germany’s Energie Baden-Württemberg (EnBW) [50% ownership stake] -- secured a $600 million syndicated debt financing package to bolster the company’s balance sheet and facilitate a corporate reorganization to consolidate the company’s energy portfolio. The debt financing package included a $200 million A-loan from the European Bank for Reconstruction and Development (EBRD) and a $400 million syndicated B-loan from Türkiye Is Bankasi, Türkiye Sinai Kalkinma Bankasi, Garanti BBVA, Akbank, and ICBC. ICBC reportedly contributed $66.66 million to the B-loan. The project was assigned by the EBRD to Category B (2019 ESP) due to the nature of the Borusan EnBW Enerji’s operations, including various wind power plants and a hydropower plant in addition to a pipeline of new renewable projects, including solar PV.

Staff comments

1. Borusan EnBW owns 12 x Turkish power plants with a total installed capacity of 725MW and one of the largest wind portfolios in the country. 2. In a typical A/B syndicated loan arrangement involving a multilateral development bank (MDB), the lender-of-record is the MDB; it keeps a part of the loan for its own account (the “A-loan”) and it sells participation in the remainder of the loan (the “B-loan”). As the lender-of-record, the MDB confers its status as a de facto preferred creditor to all B-loan participants. 3. The EBRD Record ID number is 53808.