IFC Provides Sustainability-Related Loan to Enerjisa to Strengthen Critical Infrastructure in Turkiye

Strategic Insights -

IFC, a member of the World Bank Group, has provided a sustainability-related loan to Enerjisa, one of Turkiye's leading energy companies, to modernize the country's electricity distribution network and support the integration of renewable energy. The loan aims to renew the electricity distribution network in regions affected by the February 2023 earthquakes and modernize the network in two different distribution regions operated by Enerjisa. This investment will improve access to electricity for the local population, aid economic recovery, and support the spread of sustainable transportation in Turkey.

Key Takeaways:

  • The loan, worth $340 million in total, is provided by the Asian Infrastructure Investment Bank (AIIB), Dutch Entrepreneurship Development Bank (FMO), Green for Growth Fund (GGF), and IFC.
  • IFC offers a six-year maturity and a 150-million local currency loan as part of the financing package.
  • The investment will support the development of Enerjisa's electric vehicle charging infrastructure and modernize the electrical grid in the regions where the company operates.
  • Enerjisa aims to reduce losses in distribution operations and strengthen women's representation in management through the deployment of a sustainability financing framework.
  • The investment is part of the World Bank Group's coordinated support for the reconstruction of regions affected by the 2023 earthquakes.

Statistics:

  • The investment is worth a total of $340 million in Turkish lira equivalent.
  • IFC's loan has a maturity of six years.
  • Enerjisa reaches 10.8 million customers in 14 provinces and provides electricity distribution services to over 22 million users.
  • IFC has committed to a record investment of $71.7 billion in private companies and financial institutions operating in developing countries in the 2025 fiscal year.

Sources:

  • Februart 2023 earthquakes (no specific reference)
  • IFC (International Finance Corporation)
  • Enerjisa Enerji A.S.
  • Asian Infrastructure Investment Bank (AIIB)
  • Dutch Entrepreneurship Development Bank (FMO)
  • Green for Growth Fund (GGF)
  • World Bank Group
  • Borsa Istanbul
  • Sabanci Holding
  • E.ON
  • Euclid Infotech Pvt. Ltd.
  • Contify.com