The Financial Times - Multilateral lenders are stepping into the gap left by crisis-hit banks to kickstart investment in Turkey’s renewable energy sector, on Monday announcing a EUR 130 million loan to a subsidiary of Zorlu energy group to build the country’s biggest wind farm. It will be the first transaction in Turkey by the European Bank for Reconstruction and Development, which is providing EUR 45 million of the total in a package led by the International Finance Corporation, the World Bank unit for private sector lending.
The IFC is investing EUR 55 million and the European Investment Bank EUR 30 million, with the EBRD and EIB contributions backed by guarantees from HSBC and Denizbank. “In an ordinary market, we would have taken the lead and syndicated from commercial banks,” said Shahbaz Mavaddat, the IFC’s director for southern Europe. Instead, the IFC, which aims to make new loans of around USD 300 million in Turkey this year, has facilitated a package financed almost entirely by multilaterals.