Yapı Kredi Bank allocates $1.5 bln for energy
Posted by meb at February 7th, 2008
Despite global fluctuations affecting the support of foreign banks to the Turkish energy sector, Yapı Kredi Bank will continue to back the sector this year.
Yapı Kredi, co-owned by Koç Holding and Uni Credit, will supply long-term financing worth $1.5 billion for hydroelectric, wind and thermal power plants, as well as ports.
Through the second half of 2006 and the period covering 2007, Yapı Kredi financed $1 billion for hydroelectric power plants with an installed capacity of 1,342 megawatts in Turkey. Over the period, other banks provided additional financing of an estimated $1.5 billion at minimum.
Yapı Kredi aims to take part in consulting and financing of electricity distribution tenders expected to be held in the upcoming period. Having supplied $227.25 million to Kumport port, purchased by a Fiba Holding and Turkon partnership in 2007, the bank will play an active role in financing the privatization of İskenderun Port.
Support for investors
Global fluctuations cut down the risk appetite of foreign banks, said Gürhan Kartal, head of Yapı Kredi’s Project and Structured Finance. Foreign banks are abstaining from financing projects due to the global crisis, Kartal said, adding that local banks want foreign banks to show an interest in the energy sector. “We do not want to shoulder all risk. We would like to make risk distribution. Besides, foreign banks will be bringing funds to Turkey.”
The fluctuations will also have an impact on financing the energy sector, said Kartal, adding that prices boomed 30-50 percent this year including interest rates and commission. The energy sector looms large as the most attractive investment area in terms of medium and long-term loans from 2008 to 2010, Kartal said.
Yapı Kredi demands equity participation totaling 20-25 percent of total investment from capital owners for the projects Yapı Kredi provides financing for, said Kartal.
The loans will not adhere to rigid rules, and installments will be determined according to the requirement of the investment, said Kartal. “As Yapı Kredi, we will stand behind investors,” said Kartal.
Energy projects financed by Yapı Kredi
*Financing Akenerji Elektrik Üretim’s Uluabat and Akocak power plants
*Financing of $45 million for Karhes, a Bereket Enerji subsidiary
*Financing 27 million euros for Yapısan’s Darıca hydroelectric power plant
*Financing for AES and IC İçtaş Enerji’s hydroelectric power plants of Damlapınar, Kepezkaya and Kumköy.
Source: Turkish Daily News
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