The refinancing packaging, which also includes additional capital expenditure (capex) financing loans, has been granted jointly by European Bank for Reconstruction and Development (EBRD), IFC, a member of the World Bank Group, and UniCredit.
AKCEZ will use the funding to install advanced metering systems by replacing older distribution lines, reduce loss levels and expand 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 mobilizing local currency financing under its A/B syndicated loan structure."
The capex portion of the refinancing package will be used by AKCEZ to support the expansion of electricity distribution network and reduce energy losses while enhancing energy efficiency.
IFC Europe, the Middle East, and North Africa infrastructure head Wiebke Schloemer said: "The refinancing package terms, which are amended and reinstated to include capex loans as well as local currency tranches, will help our long-term partner AKCEZ and its subsidiaries to further improve the quality and reliability of service."
In 2010, AKCEZ received a similar financing package from the same group of lenders for privatization of Turkey’s electricity distribution company Sakarya Elektrik Dagitim (SEDAS) and for its capex needs.
All the electricity distribution companies in Turkey were privatized during 2010-13, with SEDAS among the early firms that became private.
Image: AKCEZ replace older distribution lines and install advanced metering systems in Turkey. Photo: courtesy of European Bank for Reconstruction and Development.
