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Export credit support enables the construction of Turkey's second-largest solar project to date.
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Deal supports UK jobs in renewable-energy sector supply chain, particularly in the Midlands, and creates new business opportunities for Polish companies in Turkey.
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Upon completion, the solar project has the potential to power over 65,000 households per year in Turkey with renewable energy.
UK Export Finance (UKEF) and KUKE, the UK and Polish export credit agencies, have guaranteed a €249 million loan being arranged by Standard Chartered Bank for Turkish renewable energy investment company Kalyon Enerji, enabling the construction of Turkey's second-largest solar project to date. This deal is expected to support UK jobs in the renewable-energy sector supply chain, particularly in the Midlands.
The 390MWp project entails the construction and operation of solar power plants at seven separate sites, with aggregate power generating capacity of 390 MWp across the provinces of Bor-Nigde, Gaziantep and Sanliurfa-Viransehir. Upon completion, the project could generate enough renewable electricity to power over 65,000 households in Turkey annually.
British exporter GE Vernova - via its subsidiary UK Grid Solutions Ltd - will supply and install inverter stations, power-plant controllers and other critical equipment. This is expected to directly support British jobs at GE Vernova's Staffordshire site, as well as jobs in the wider UK supply chain.
Polish exporters will deliver security systems (including both software and equipment) and steel components for the project. This is set to create jobs in manufacturing and logistics sectors.
Standard Chartered acted as Structuring Bank, Green Loan Coordinator, Lead Arranger and Lender. The financing is guaranteed by a 100% UKEF guarantee, with over €122 million reinsured by KUKE, Poland's export credit agency.
Renewable energy represents 54% of the total installed electricity capacity in Turkey. This new project will increase the availability of renewable energy in Turkey and deliver on UKEF's commitment to supporting the global transition towards low-carbon economies.
Gareth Thomas, UK Minister for Exports, said:
Our mission is to grow the economy, including through boosting exports so British businesses can sell their world-class goods and services around the world. This announcement will support jobs and businesses across the country, especially in the Midlands, and support the global transition toward cleaner energy. It also demonstrates how UK Export Finance can help businesses grow, export and boost economic growth.
Piotr Maciaszek, Director of Insurance and International Relations Department, KUKE, said:
This contract in the green technology sector proves that Polish companies have broad competences and can provide products and services of the highest quality. Thanks to the support of KUKE, Polish entities are more often involved in the implementation of infrastructure projects in Africa, the Middle East and Asia. We hope to announce further transactions this year with significant involvement from Polish businesses, meeting large investment needs around the world whilst improving many people's quality of life.
Uday Mathur, Global Leader, Capital Markets GE Vernova, said:
We have a long-term, successful partnership with UK Export Finance in Türkiye, enabling GE Vernova to continue offering clients competitive financing solutions for solar and storage technology. GE Vernova has helped deliver approximately 2.8 GW of solar capacity in Türkiye with an extended equipment scope and a services package. We are proud to have delivered yet another landmark financing in Türkiye through successful collaboration with Kalyon Enerji and UK Export Finance.
Yoshi Ichikawa, Head of Structured Export Finance for Europe, Standard Chartered, said:
Through this important multi-site solar project in Türkiye, we were able to showcase our expertise to structure this Green Loan financing supported by UKEF and KUKE and contribute to our strategic priorities to help accelerate our clients' transition to net zero. With our unique expertise in sustainable finance and a track record in financing renewable projects, we are proud to help shape the future of communities in our footprint.
Dr. Murtaza Ata, CEO of Kalyon Enerji, added:
We are proud to be a driving force behind Türkiye's transition to clean energy. In 2023, we became fully operational in Kalyon Enerji's Karapınar Solar Power Plant, which is the largest solar power plant in Türkiye and Europe, contributing 11% of the solar power generated in Türkiye. This is Kalyon Enerji's second transaction with UKEF and GE Vernova, for the second largest solar project in Türkiye to date. Thanks to our business partners for their support, by investing in renewable energy projects, we're not only providing sustainable energy solutions, but also creating jobs and contributing to Türkiye's energy independence using renewable energy sources.
Notes
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The €249 million financing for Kalyon' Enerji's project will be structured and raised through Standard Chartered Bank acting as lead arranger and lender.
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The financing is guaranteed by a 100% UKEF guarantee, with over €122 million reinsured by KUKE.
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This is separate to UKEF's previous financing in 2021 for Kalyon Enerji's Karapınar solar project - the largest solar project in Turkey and Europe.
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This latest financing follows other transactions Standard Chartered, UKEF and KUKE have recently delivered in Turkey, including the two ECAs supporting a €1.027 billion loan facility raised in 2023 to support a new electric railway between Yerköy and Kayseri, and Standard Chartered providing €2.4 billion for the Turkish Ministry of Treasury and Finance to fund the delivery of the Ankara-Izmir high speed railway project.
