Akfen Energy

completed

The proposed investment is an equity participation of USD100 mm investment for an up to 20 % equity stake of Akfen Holding A.S.’ (“Akfen Holding” or “Akfen Group” or the “sponsor”) energy platform company, Akfen Yenilenebilir Enerji A.S. (“Akfen”, “Akfen Energy” or the “company”) through which Akfen Holding will develop, construct, and operate power assets in Turkey (the “project”). EBRD is working in parallel for a similar investment and IFC’s Asset Management Company could also consider co-investing along with IFC. The proceeds of EBRD and IFC’s investment will be used to develop new projects that would expand Akfen’s generation capacity, diversify its generation portfolio and make it an integrated energy player in Turkey.Having established its first company in 1976, Akfen Group gained holding status in 1999. Akfen Holding invests in, manages and coordinates its subsidiaries and affiliates in a variety of sectors such as airport management and operations, construction, port operations, marine transport, water distribution and waste water services, energy and real estate. IFC has partnered with the Akfen Group in a number of high profile projects, including (i) Mersin International Port Eurobond issue (disclosed as project #33943); (ii) TAV Tunisia (project # 26913) and TAV Georgia airport financings (disclosed as project #24628). Ongoing supervision of these existing investments indicates that group’s environmental and social performance is generally satisfactory.Akfen Holding established a new company, Akfen Energy, where all its energy related operational and pipeline assets are transferred. This entity serves as the growth platform in which IFC and EBRD will invest. Akfen Energy’s pipeline and portfolio of assets includes small to medium capacity hydroelectric power plants (“HEPP”s), small (maximum 10 MW) solar power projects (“SPP”s) and a pipeline of potential wind power projects (“WPP”s). The company plans to increase its installed capacity from 204 MW to 238 MW for HEPPs, from 7.3 MW to 146.4 MW for SPP and from 0 to 150 MW for WPP by 2020. Potential future pipeline prospects range in capacity from 7 MW to 17 MW for HEPPs, 0.5 MW to 10.4 MW for SPPs and 17 MW to 250 MW for WPPs. Akfen Energy may also consider future investments in geothermal power. Akfen’s existing and planned thermal power plants will be developed by another Akfen Holding subsidiary, not Akfen Energy.Site locations for renewable energy projects are spread throughout Turkey, with clusters in the south western and northeast parts of the country. An overview of the existing portfolio and pipeline projects that are covered by Akfen Energy is attached as Annex 1.