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Overview

CDB contributes $125 million to $500 million syndicated loan to Kazancı Holding for various hydroelectric power plants

Commitments (Constant USD, 2023)$129,246,411
Commitment Year•2013Country of Activity•TurkeyDirect Recipient Country of Incorporation•TurkeySector•EnergyFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Feb 16, 2013

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 Policy Banks

  • China Development Bank (CDB)

Cofinancing agencies

Private Sector

  • Goldman Sachs Bank USA
  • İşbank
  • Türkiye Garanti Bank BBVA

Receiving agencies

Private Sector

  • Kazancı Holding A.Ş.

Implementing agencies

Private Sector

  • Aksa Enerji

Loan desecription

ICBC contributions to $500 million syndicated loan for Kazancı Holding for various hydroelectric power plants

Interest type•Unknown

Collateral

Pledge of 68.86% of the issued capital of Aksa Enerji.

Narrative

Full Description

Project narrative

On February 26, 2013, China Development Bank (CDB) contributed an estimated $125 million to a $500 million syndicated loan agreement (“the Old Loan”) with Kazancı Holding A.Ş. to support various hydroelectric power plants. Kazancı Holding A.Ş., being the Parent Company of Aksa Enerji, secured the $500 million long term credit facility arranged by Goldman Sachs International, China Development Bank, Türkiye Garanti Bankası A.Ş.(“Garanti Bankası”) and Türkiye İş Bankası A.Ş. (“İş Bankası”). 68.86% of the issued capital of Aksa Enerji was pledged as security of the credit facility to Garanti Bankası acting as Security Agent. Then, under the leadership of Garanti Bank and İşbank, a new $800 million loan agreement (“the New Loan”) was signed between the consortium consisting T.C. Ziraat Bankası A.Ş., Türkiye Halk Bankası A.Ş., Türkiye Vakıflar Bankası T.A.O., Odea Bank A.Ş. ve Türkiye Sınai Kalkınma Bankası A.Ş. and Kazancı Holding and Aksa Doğal Gaz Dağıtım A.Ş. on August 2, 2016. With this New Loan, the above-mentioned Old Loan was fully repaid and the Aksa Energy shares owned by Kazancı Holding, which were pledged as a source of collateral, became free. In addition to these liberalized shares belonging to the Kazancı Holding, representing 61.98% capital shares of Aksa Energy which is owned by Kazancı Holding and is 9.74% shares of Kazancı Holding, was pledged to be a guarantee for the New Loan, to the Guarantee Representative Türkiye İş Bankası A.Ş. by Kazancı Holding. In addition, Aksa Energy shares representing 16.62% of the capital that Kazancı Holding bought back from Goldman Sachs International were pledged to İşbank by Kazancı Holding to provide additional security for the New Loan.

Staff comments

1. The size of CDB’s contribution to the loan syndicate is unknown. For the time being, AidData assumes equal contributions ($125 million) across the four known members of the syndicate.