The European Bank for Reconstruction and Development (EBRD) provided Turkish electricity firm Enerjisa Enerji with a financing package worth $100 million, the bank announced late Thursday.
Enerjisa Enerji is a joint venture between Sabanci Holding and German E.ON, with each holding a 40% share, while the remaining 20% remains free-floating on Turkey's stock exchange, Borsa Istanbul.
In terms of energy distribution and retail, Enerjisa Enerji serves around 21 million people across Turkey. The EBRD's loan will finance the company's ongoing investment program, including the improvement of grid infrastructure for sustainable and high-quality energy supply and technological investments.
"The transaction will be the first EBRD loan linked to the new Turkish Lira Overnight Reference Rate (TLREF) benchmark, which is expected to become the reference rate for corporate lending in Turkey," the statement said. The TLREF is a new risk-free rate planned out by the government in coordination with regulators, Borsa Istanbul and other market actors, with consultation from the EBRD Treasury, the bank said.
"This transparent and reliable benchmark is a step forward in the development of Turkey's local capital market and in line with the EBRD's efforts," the statement said.
Under the loan agreement, the EBRD and Enerjisa Enerji will also cooperate to advance equal opportunities in the power sector, with a focus on supporting women's access to employment in the sector, the bank noted. The EBRD has invested almost 12 billion euros ($13.3 billion) in 302 projects in Turkey since 2009, the majority of which were in the private sector. More than half of its investments in Turkey promote sustainability and the sensible use of energy.