ICBC contributes $44 million to $132 million syndicated loan for 78 MW Karacaören 1 & 2 Hydroelectric Power Plants Privatization Project

In June 2016, ICBC contributed $44 million to a $132 million syndicated loan agreement with Kremna Enerji ve Ticaret A.S. ('Kremna') — a special purpose vehicle and wholly-owned subsidiary of Gama Enerji A.S. (GEAS) — for the Karacaören 1 & 2 Hydroelectric Power Plants Privatization Project. The maturity date of the loan is June 2032. The other participants in the loan syndicate included the International Finance Corporation (IFC) and European Bank for Reconstruction and Development (EBRD). They each contributed $44 million to the syndicated loan. The proceeds of the loan were used by the borrower to facilitate the acquisition of the Karacaoren-1 and Karacaoren-2 hydroelectric power plants (with a total installed capacity of 78 MW) from Turkey’s Privatisation Administration and renovate and streamline the operations of the power plants. This $195.4 million project was financed according to a debt-to-equity ratio of 68:32. The acquisition was completed on June 22, 2016.

Additional details

Gama Enerji A.S. (GEAS) was the winning bidder at the privatization tender held on November 9, 2015, for the two power plants in Antalya and Burdur districts (the Karacaoren-1 and Karacaoren-2 hydroelectric power plants), which had been operational during the prior 23 years. The privatization has undertaken the form of Transfer-of-Operating-Rights for 49 years. The Turkish project title is Karacaören Hidro Elektrik Santralleri.

Number of official sources

5

Number of total sources

8