Turkish power plant funding arranged

Turkish power plant funding arranged

Published: December 3, 2014

Saudi Arabia’s ACWA Power gets backing from EBRD, IFC, Banque Saudi Fransi and others.

ACWA Power, a Saudi Arabian energy company, has secured US$670mn in conventional and Islamic financing to back the construction of a combined-cycle gas turbine power plant in Turkey.

The 950MW, US$1bn plant will be built near the city of Kirikkale in Central Anatolia by ACWA’s local subsidiary.

The European Bank for Reconstruction and Development has arranged a syndicated loan of US$250mn, including US$200mn from its own account and US$50mn syndicated to Banque Saudi Fransi, which is also providing US$100mn in an Islamic funding line. The International Finance Corporation has contributed a further US$170mn in a syndicated loan, of which US$45mn is syndicated to the Korea Development Bank.

Finally, Korea Eximbank and Standard Chartered Bankhave joined the funding package as parallel lenders with US$90mn and US$60mn, respectively.