Enerjisa phases I and II

Active

In 2007, Turkish Enerjisa Power Generation (Enerjisa) developed a project that included ten hydroelectric power plants in the Cambasi, Ceyhan and Seyhan basins with a capacity of 980 MW and a 920 MW natural gas-fired thermal plant in Bandirma, with a total capacity of 1,900 megawatts to supply electricity in the country's deregulated power market. In May 2007 Enerjisa was created a joint venture of Haci Omer Sabanci Holding S.A. (Sabanci) with 50% and Verbund Österreichische Elektrizitätswirtschafts-Aktiengesellschaft (Verbund) with the remaining 50%. The Sabanci was Turkey's leading industrial and financial conglomerate. The Verbund was Austria's leading electricity utility. At that time, EnerjiSA operated four gas power plants with a total generation capacity of 370 MW and four hydropower plants with a combined output of 92.5 MW. The company held licenses for ten new hydropower plants as well as a license for a power plant. Prior to the joint venture, the Sabanci Group was the majority shareholder in EnerjiSA. The new capacity of 1900 MW was to be raised, also via acquisitions, to 5,000 MW by 2015 or 10% of the Turkish electricity market by 2015. In June 2008, Enerjisa Power Generation (Enerjisa) reached financial close on an US$ 1,114 million debt financing package for the initial phase of the company’s investment program that involved a 1,900 MW power plant portfolio in Turkey. The International Finance Corporation (IFC), Turkish Akbank T.A. and WestLB AG, acting as global coordinators, arranged a US$1,114 million debt package for Enerjisa’s project. Enerjisa committed US$148 million equity contribution to the project. The total transaction value was US$1,539. IFC provided a loan of US$277 on its own account. Joining IFC B loan were Bank Austria, Erste Bank der oesterreichischen Sparkassen, KfW, Raiffeisen Zentralbank Oesterreich, Société Générale, and WestLB. The interest rate stands at 195 basis points above the EURIBOR. The financing package was the largest international transaction for a private company in Turkey that would supply the country’s liberalized power market. On April 2011, a new 12 year loan to Enerjisa has been arranged to finance the construction of four new power plants located close to Enerjisa's existing 920MW gas-fired plant at Bandirma, two hydro plants of 46 MW and 80 MW and a 20 MW wind farm. The new gaz-fired plants to be constructed was planned to generate 1,000MW. The electricity to be produced by the power plants would be sold to the wholesale market. On April 6 2011, this project phase II reached financial closure, with the signing of a $1 billion credit package, arranged by the IFC with a consortium of commercial bank, including West LB, ING, Societe Generale, BAWAG, UniCredit, FMO, Erste Group Bank, Raiffeisen Bank, Turkey's TSKB and Germany's state development bank KfW. In 2012, E.ON acquired Verbund's shares in Enerjisa in return for 8 run-of-river hydropower projects totalling 351MW in Germany as well as EUR300 million in cash payments. The swap was expected to be finalized in the first quarter of 2013 after approval from the European Commission.