The European Bank for Reconstruction and Development (EBRD), International Finance Corporation (IFC) and UniCredit are jointly providing a $325m long-term refinancing package to Turkey’s energy supply and distribution company, Akcez Enerji Yatırımları Sanayi ve Ticaret (AKCEZ).
Under the IFC and EBRD B-Loans structure, IFC and EBRD will each invest $105m and UniCredit will invest $115m.
The capex part of the refinancing package will support the expansion of Turkey’s electricity distribution network and help to reduce energy losses and enhance energy efficiency.
The investment will help AKCEZ to replace older distribution lines and install advanced metering systems, lower loss levels and extend its distribution network.
EBRD power and energy director Nandita Parshad said: "AKCEZ has the ambition to set the bar higher for other market players by raising quality standards, efficiency and customer satisfaction.
"Our refinancing package for AKCEZ and its subsidiaries aims to help the company achieve exactly this. It comes in both foreign and local currency and it is in fact the first time the EBRD is mobilising local currency financing under its A/B syndicated loan structure."
In 2010, AKCEZ was given a loan by the same group for privatisation of SEDAS and its capital expenditure needs.
SEDAS was one of the first electricity distribution firms to be privatised in Turkey. All Turkish electricity distribution companies were privatised during 2010-13.