Active Mixed AidData Chinese Aid

ICBC contributes to $600 million syndicated debt financing package to bolster the company’s balance sheet and facilitate a corporate reorganization to consolidate the company’s energy portfolio

$66.66M USD

Funder	Industrial and Commercial Bank of China (ICBC)
Recipient Organization	Borusan EnBW Enerji Yatirimlari ve Uretim A.S.
Country	Turkey
Start Date	Apr 01, 2023
End Date	Jan 24, 2030
Duration	2,490 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`108522`

Grant Description

ICBC contributes to $600 million syndicated debt financing package to Turkish firm Borusan EnBW Enerji to bolster the company’s balance sheet and facilitate a corporate reorganization to consolidate the company’s energy portfolio in 2023 In April 2023, Borusan EnBW Enerji Yatirimlari ve Uretim A.S. (‘Borusan EnBW Enerji’) -- a special purpose vehicle and joint venture of Turkey’s Borusan [50% ownership stake] and Germany’s Energie Baden-Württemberg (EnBW) [50% ownership stake] -- secured a $600 million syndicated debt financing package to bolster the company’s balance sheet and facilitate a corporate reorganization to consolidate the company’s energy portfolio.

The debt financing package included a $200 million A-loan from the European Bank for Reconstruction and Development (EBRD) and a $400 million syndicated B-loan from Türkiye Is Bankasi, Türkiye Sinai Kalkinma Bankasi, Garanti BBVA, Akbank, and ICBC. ICBC reportedly contributed $66.66 million to the B-loan.

The project was assigned by the EBRD to Category B (2019 ESP) due to the nature of the Borusan EnBW Enerji’s operations, including various wind power plants and a hydropower plant in addition to a pipeline of new renewable projects, including solar PV.

📋 Staff Comments

Borusan EnBW owns 12 x Turkish power plants with a total installed capacity of 725MW and one of the largest wind portfolios in the country.
In a typical A/B syndicated loan arrangement involving a multilateral development bank (MDB), the lender-of-record is the MDB; it keeps a part of the loan for its own account (the “A-loan”) and it sells participation in the remainder of the loan (the “B-loan”). As the lender-of-record, the MDB confers its status as a de facto preferred creditor to all B-loan participants.
The EBRD project ID number is 53808.

📚 Sources & References

EBRD grants Turkish renewables loan
B o r u s a n E n B W E n e r j i A d d i t i o n a l F a c i l i t y 2 0 2 3
EBRD leads US$ 200 million financing package for key renewables player
Borusan EnBW Loan
ICBC joins US$600 million loan syndicate for Turkey renewables
EBRD Loans $200 Million to Turkish Renewable Energy Developer Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.