Rönesans Enerji Secures $165 Million for Wind Power Investments

Rönesans Enerji, a partnership between Rönesans Holding and TotalEnergies, has secured USD 165 million in financing with a 15-year maturity backed by Germany's export credit guarantee as it accelerates efforts toward becoming one of Turkey's three largest green energy companies.

In the financing obtained with German Export Credit Agency (ECA) guarantee for projects to be implemented by Rönesans Enerji, HSBC served as Green Credit Coordinator, Coordination and Structuring Bank, Financing Provider, Security Agent and ECA-Supported Lending Bank, while ING served as co-arranger and ECA-Supported Lending Bank.

The financing, which offers the most favorable terms for investment with long-term repayment periods and competitive credit costs, stands out by not requiring local bank guarantees unlike comparable deals. With this significant financing in place, Rönesans Enerji will implement its first operational facility under the Renewable Energy Resource Area Wind Power Plant - 3 (YEKA RES - 3) projects. By implementing YEKA-3 projects, Rönesans Enerji will more than double its renewable energy capacity by adding a new 189 MW wind power plant to its existing 166 MW hydroelectric power plant capacity across Turkey. The financing, Rönesans Holding's first 'Green Credit' transaction, also marks one of the sector's first YEKA RES – 3 loans.

Continued growth through renewable energy portfolio

Rönesans Holding, led by Erman Ilıcak, which continues its growth in the energy sector alongside contracting and investment activities, signed another international partnership agreement in 2023 when TotalEnergies acquired a 50 percent stake in Rönesans Enerji. 

During the partnership period, Rönesans Enerji continues to grow with a 100 percent renewable energy portfolio, aiming to become one of Turkey's three largest green energy companies. With the latest financing secured, the company has taken a major step toward its 2,000 MW green energy investment target by 2028.

A crucial milestone on the path to achieving our net-zero emissions target

Erman Ilıcak, Chairman of Rönesans Holding, said the following on the matter: "Our goal at Rönesans Enerji is to implement approximately 7-10 percent of the green energy investments specified in Turkey's National Energy Plan by 2028. Following our partnership agreement with TotalEnergies, we took concrete steps to reach our goal. This new financing agreement represents a crucial milestone on the path to achieving our net-zero emissions target, while also actively contributing to the country's attainment of targeted renewable energy capacity in wind power. We are pleased to work with the German Export Credit Agency (ECA) and other international partners to progress in this direction and reduce the country's dependence on fossil fuels and consequently greenhouse gas emissions."

Emre Hatem, Head of the Rönesans Holding Energy Group and Board Member, said in his statement regarding the matter, "With this new financing, we will complete the three wind power plants in our current investment portfolio and increase our capacity to over 355 MW within a year, more than doubling current levels. This step will bring us even closer to our goal of becoming one of Turkey's three largest green energy companies. Through our extensive Engineering-Procurement-Construction (EPC) expertise and ability to secure international financing at highly competitive rates, we want to contribute to Turkey's green energy transformation. Securing a 15-year loan at one of the lowest costs in the market, sourced entirely from abroad, represents a significant gain for both our company and our sector. This investment and financing will make a very important contribution to achieving our growth targets."

27 wind turbines will be installed in total

This project and financing represent significant achievements for all stakeholders at every stage of the process. The agreement uses a sophisticated structure to meet the local requirements of YEKA specifications, maximizing the credit amount obtained through the German ECA. The 189 MW new capacity financed by this agreement will be divided among three facilities. The largest facility with 84 MW capacity using 12 turbines is planned for installation in Malatya Sağıluşağı, eight turbines with 56 MW capacity in Çorum Osmancık, and seven turbines with 49 MW capacity in Sivas Kayalar. Upon completion of these projects, it is targeted to meet the electricity needs of approximately 340,000 households in Turkey and prevent approximately 345,000 tonnes of CO2 emissions annually.

The 189 MW three-wind power plant project, to be implemented under the YEKA (Renewable Energy Resource Area) model designed to optimize the use of renewable energy sources in Turkey, was awarded to Rönesans Enerji under the third wind power project (RES-3) tender, which allocated a total capacity of 850 MW across 20 different regions. Among current YEKA tenders, Rönesans achieved one of the fastest financial closings and obtained one of the first financings provided for the YEKA RES-3 project.

Gradual operational start from end of 2024

All three facilities are targeted to come online gradually from the end of 2024. The highest capacity 7 MW wind turbines currently commercially available in Turkey will be used and the majority of equipment, including towers, blades and generators, will be sourced from Turkey. 

Caner Işlak, Head of HSBC Turkey Corporate Banking and Investment Banking and Deputy General Manager, said in his statement, "We are pleased to serve as Coordination and Structuring Bank and Green Credit Coordinator for this groundbreaking financing. As HSBC, we prioritize working closely with our clients to implement significant transactions that support their objectives."

Bart Ponsioen, General Manager of ING's Structured Export Finance, made the following statement: "With our deep expertise in export finance and sustainable finance and our relationship-oriented approach, we are pleased to support Rönesans Holding and TotalEnergies in accelerating Turkey's energy transformation. We commend all parties involved in this process."