Press Releases

IFC, EBRD, UniCredit Bank AG Financing to Akcez and SEDAª Supports Electricity Privatization in Turkey

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Zibu Sibanda
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Lotte Pang
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Washington, D.C., December 9, 2010 - IFC, a member of the World Bank Group, the European Bank for Reconstruction and Development, and UniCredit Bank AG will jointly support a program to privatize electricity distribution in Turkey aimed at improving energy supply and services in the industrial Northwest region.

The financial institutions are providing financing of up to $325 million to Akcez Enerji Yatıırımları Sanayi ve Ticaret A.ª. (Akcez) and Sakarya Elektrik Dağıtım A.ª. (SEDAª), an electricity-distribution company.  IFC and EBRD are providing $75 million and $100 million respectively, with UniCredit providing $150 million.

Bekir Sami Güven, Chief Executive Officer at SEDAª said the financing provided by IFC, EBRD, and UniCredit shows confidence in Turkey’s privatization program in the power sector.  “The financing plays an important role for bringing new potential investments and cooperation in the future.  The loan will help Akcez finalize the privatization of SEDAª and provide SEDAª with the support for its further reorganization process.  Significant post privatization improvements have already made SEDAª a cash positive business and we will continue with these developments to streamline the company’s operations and increase efficiency,” he added.

According to EBRD’s Director for Turkey, Michael Davey, the new project highlights an effective multilateral cooperation approach to further restructuring of Turkey’s electricity-distribution industry.  “This is the first EBRD electricity-distribution project in Turkey—the sixth-largest electricity market in Europe and one of the fastest growing globally.  This loan is an important component of EBRD’s ongoing support of Turkey’s privatization program, and will also allow SEDAª to make considerable efficiency and environmental improvements in its distribution network,” he said.

Akcez is a joint venture between Turkish Akkök Holding, Akenerji and foreign strategic investor CEZ (Czech Republic), which share long-term development goals within Turkey’s energy sector.

Dimitris Tsitsiragos, IFC Director for Middle East, North Africa, and Southern Europe, said:  “We hope that this project, IFC’s first involvement in Turkey’s power distribution sector, will set an example for other potential investors for making long-term investments and help ensure a successful finalization of the Turkish government’s energy-distribution privatization program.  The structure of this significant agreement once again demonstrates IFC’s important role in mobilizing other financial resources and a good example of cooperation between multilateral institutions.”

Eriks Atvars, Global Head of Power and Environment at UniCredit Bank AG, added:  “This is a landmark for energy sector financing in Turkey.  Together with EBRD and IFC, we have structured a financing intended to satisfy the clients leveraging, risk diversification, and capex investment needs with a structure that will find broad acceptance among leading international financial institutions.”

About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in developing countries. We create opportunity for people to escape poverty and improve their lives. We do so by providing financing to help businesses employ more people and supply essential services, by mobilizing capital from others, and by delivering advisory services to ensure sustainable development. In a time of global economic uncertainty, our new investments climbed to a record $18 billion in fiscal 2010. For more information, visit

To learn more about EBRD, visit

To learn more about UniCredit Bank AG, visit