Borusan EnBW Enerji Yatırımları ve Uretim A.S.
Status: Approved investmentWhy disclosure?
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In case of questions, please contact us at disclosure@fmo.nl
Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
Borusan EnBW Enerji Yatirimlari ve Uretim A.S. (the “Company”) is a renewable energy company which owns and operates renewable energy assets in Turkey. The existing power generation portfolio has an installed capacity of 725MW. The Company is 50/50 owned by the Turkish conglomerate Borusan Holding A.S. (“Borusan Holding”) and the German utility EnBW AG (“EnBW”).
What is our funding objective?
FMO will participate as a B-lender with EBRD in the lead, and the total debt package will also include contributions from local lenders. The proceeds will be used to re-profile the outstanding loan balance of USD 350mln of the Company and its subsidiaries that have direct ownership of the renewable energy projects in the portfolio.
Why do we fund this investment?
This financing is a part of the ongoing reorganization process which will ultimately result in merger of the subsidiaries under Borusan EnBW Enerji as a single entity. FMO funding will strengthen the balance sheet of the Company and help to realize the expansion plans in renewable energy investments.
What is the Environmental and Social categorization rationale?
We have categorized this transaction E&S B+, as these are operational projects which conduct the production of (fully renewable) electric power with relatively limited environmental and social impacts. FMO’s environmental and social due diligence indicates that the investment must be managed in a manner consistent with the following applicable IFC Performance Standards (PS) in particular: PS 1: Assessment and Management of Environmental and Social Risks and Impacts, PS 2: Labor and working conditions, PS 3: Resource Efficiency and Pollution Prevention, PS 4: Community Health, Safety and Security, PS 5: Land Acquisition and Involuntary Resettlement, PS 6: Biodiversity Conservation and Sustainable Management of Living Natural Resources, and PS 8: Cultural Heritage. An adequate environmental and social management system is in place. PS 7 (Indigenous Peoples) is not applicable as the project is not impacting any Indigenous Peoples. Please refer to EBRD’s project disclosure page for further E&S information: https://www.ebrd.com/work-with-us/projects/psd/53808.html
More investments
| Date | Total FMO financing |
|---|---|
| 1/19/2022 | USD 40.00 MLN |
- Website customer/investment
- https://www.borusanenbw.com.tr/
- Region
- Europe & Central Asia
- Country
- Türkiye
- Sector
- Energy
- Publication date
- 1/16/2023
- Effective date
- 4/25/2023
- Total FMO financing
- USD 80.00 MLN
- Funding
- FMO NV
-
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - B+