Istanbul, Turkey, June 23 2016—IFC,
a member of the World Bank Group, is becoming a shareholder of renewable
energy company Akfen Yenilenebilir Enerji (Afken Energy), part of an effort
to ramp up the production of clean power in Turkey.
IFC is investing $100 million in Akfen Energy,
a subsidiary of Akfen Holding, to acquire a 16.67 percent stake in the
company. The investment will help Akfen Energy to almost triple its renewable
energy production. The company operates solar- and hydro-power plants and
is expanding into wind farms. IFC's investment is designed to support Turkey's
emerging clean energy industry, help the country reduce its reliance on
climate-changing fossil fuels, and bolster domestic power supplies.
“We aim to become a leading player in the
renewables market in Turkey and IFC’s equity investment in our company
provides strong support to realize this goal,” said Akfen Holding Chairman
Hamdi Akżn: “We are in the process of
creating a new platform for all investors in renewable energy, which will
utilize Turkey’s local renewable energy resources with sustainable generation
in all segments of the energy sector.”
IFC has a long-standing partnership with
Akfen Holding, a multinational corporation. IFC has supported several projects
spearheaded by the company, including the Mersin International Port Eurobond
issue and the construction of TAV Tiblisi Airport. After the closing procedures,
as shareholder in Akfen Energy, IFC will nominate a board member to the
company, further improving the company’s corporate governance.
“Renewable energy is a key and sustainable
solution to meet ever growing energy demand and Turkey benefits from a
wealth of renewable energy resources.” said Dimitris Tsitsiragos, IFC
Vice President, Global Client Services. “The private sector has a significant
role to play in supporting Turkey’s targets in utilizing these resources.
We are happy to extend our strong relationship with Akfen into the energy
sector and to continue to contribute to the company’s efforts to bolster
renewable energy production.”
This is IFC’s third equity investment in
Turkey’s power sector. It is designed to help the country reach its goal
of generating 30 percent of its energy from renewable sources by 2023.
Turkey’s energy sector has achieved a transformational
shift over the last 10 years, going from a reliance on public investments
and state guarantees towards private sector investments. The World Bank
Group has been a long-time partner in this reform process. In Turkey, IFC’s
second largest country of operations globally, IFC has significantly increased
its investments in the power sector by investing and mobilizing a total
of $695 million over the last three years.
Globally, IFC invested more than $4 billion
in power, transport and energy projects in FY15, including funds mobilized
from third parties.
About Akfen Holding
Having established its first company in 1976,
Akfen is today one of Turkey’s top infrastructure investment holding firms.
Akfen Holding invests in and manages subsidiaries and affiliates active
in industries such as airport operations, construction, port operations,
marine transport, water distribution, waste water services, energy, and
real estate. For more information, visit www.akfen.com.tr.
IFC, a member of the World Bank Group, is
the largest global development institution focused on the private sector
in emerging markets. Working with more than 2,000 businesses worldwide,
we use our capital, expertise, and influence to create opportunity where
it’s needed most. In FY15, our long-term investments in developing countries
rose to nearly $18 billion, helping the private sector play an essential
role in the global effort to end extreme poverty and boost shared prosperity.
For more information, visit www.ifc.org.