OSMANGAZI ELEKTRIK DAGITIM AS

completed

Osmangazi Elektrik Dagitim A.S. (“OEDAS” or the “Company”) is an electricity distributor serving a region covering five provinces in central Turkey, namely Eskisehir, Afyon, Usak, Kutahya and Bilecik (“OEDAS Region”). It is owned by Zorlu Osmangazi Enerji, Sanayi ve Ticaret A.S. (“Zorlu Osmangazi”), a joint stock company incorporated in Turkey in 2016 by Zorlu Enerji Elektrik Uretim A.S. (“Zorlu Enerji”, or the “Sponsor”), a Turkish power company with approximately 1,300MW of operational assets in Turkey, Israel and Pakistan. Zorlu Osmangazi also wholly owns Osmangazi Elektrik Perakende Satis A.S. (“OEPSAS”), the incumbent electricity supply company serving the OEDAS Region and OEPSAS follows the sponsor’s corporate management systems.IFC had a previous investment in OEDAS through Zorlu Disco 1 (project #39691 – https://disclosures.ifc.org/enterprise-search-results-home/39691). The sponsor is also well-known to IFC through two prior investments: the 135 MW Rotor Elektrik wind project in Turkey (Project #27191-https://disclosures.ifc.org/project-detail/ESRS/27191/rotor-elektrik-uretim-a-s) and the 56.4 MW wind project in Pakistan (Project #29251-https://disclosures.ifc.org/project-detail/ESRS/29251/zorlu-pakistan). The sponsor is a subsidiary of Zorlu Holding, one of the largest conglomerates in Turkey, which also owns a gas distribution and supply company.OEDAS has 1.9 million subscribers serving a population of 2.8 million in 125 towns and 1,457 villages, within 59 districts. OEDAS has a distributed total net energy of 6,777 TWh in 2020 and a distribution network of approximately 50,787 km long (~24,202 km is Medium Voltage (MV) -1kV to 34.5 kV-, ~ 26,585 km is Low Voltage (LV) -up to 1KV-), consisting of aerial lines and underground lines which forms ~ 16.3% of total length. OEDAS has 43 repair and maintenance units and five main warehouses distributed in OEDAS regions. OEDAS’ assets also include administrative buildings, client services centers, small office buildings, and transformer stations.The proposed IFC investment is an A Loan for up to US$75 million equivalent in Turkish to support the Company’s capital expenditure program in the 2021-2025 regulatory period (the “Project”). The approximately US$400 million equivalent capex program of the Company for the period of the project includes distribution network investments including expansion, upgrade and rehabilitation which will support improvement in technical efficiency, network stability and service quality. Network operation system investments, metering investments, environment, safety, and other legally compulsory investments are also included in the program.