Akbank grants $230 million loan to Soyak
Posted by meb at March 11th, 2008
Akbank, Turkey’s biggest bank by market value, granted $230 million in loans to the Senerji Energy Generation Company, a subsidiary of Soyak Holding that operates in the energy sector as well as construction, industry, service and trade sectors. The loan will be used to establish two hydroelectric power plants in central and eastern Anatolian regions.
Turkey’s energy demand has increased in line with the country’s economic development, Akbank Managing Director Zafer Kurtul said last week, at the credit agreement signing ceremony at the Akbank head office. An energy deficit may occur unless the current energy production capacity increases, he said.
The loan will be used to finance the Güllübağ Hydroelectric Power Plant on the Çoruh River in Erzurum and the Bayramhacılı Hydroelectric Power Plant on Kızılırmak River in Kayseri. The plants will have installed capacities of 96 megawatts and 45 megawatts respectively. The loan, which is subject to a grace period of three-and-a-half years and a maturity of 11 years, will be provided in pieces during the investment period.
Emphasis on energy:
Following the real estate business, energy ranks second on the list of priorities for Soyak Group, said Soyak Holding Chairman Erkut Soyak. The group will also continue growing in the areas of cement and shopping malls, he said.
Soyak, which has focused on energy activities for the last five years, will invest at least $3 billion in the energy sector in the next 10 years, he said. “These investments will mainly be for hydroelectric and wind power plants. Besides, we also have investment works for geothermal, solar and thermal power plants. We will also participate in distribution tenders.”
It is not healthy to hold distribution tenders before ensuring supply security, Soyak said. “First of all, Turkey should meet electricity consumption with its production. Otherwise, it does not seem very possible to attain a price formulation at the distribution tenders. The privatization of production facilities first is the appropriate method.”
Loan peculiar to project:
The energy sector has the potential to affect all other sectors in the country, said Ferda Belsi, vice managing director responsible for commercial banking at Akbank.
“Primary energy and electricity consumption values are expected to follow a course parallel to the 2008 economic growth target. Within this framework, Akbank will continue supporting the sector by providing long-term loans particularly to projects for companies that plan to invest in the energy sector. By forming project-based financing models, our bank provides project loans with flexible interest and capital paybacks in line with company preferences and needs,” said Belsi.
Source: Turkish Daily News
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