Galata Wind receives USD 25 million green loan from Proparco

Galata Wind, which invests in renewable energy, has signed a new loan agreement of USD 25 million with Proparco, the private sector subsidiary of the French Development Agency (AFD). For the first time in the last 10 years, Proparco, the private sector subsidiary of the French Development Agency (AFD), has provided a loan to a company operating in the renewable energy sector in Turkey.  The loan, which has sustainability conditions specific to Taşpınar Hybrid SPP, will be allocated for the entire project, which has an investment budget of approximately USD 30 million and the first phase of which has been largely completed.

The agreement between Galata Wind and Proparco was signed on this Monday by Galata Wind CEO Burak Kuyan and Proparco CEO Françoise Lombard. Doğan Investment Bank, acted as the financial advisor and coordinator of this green loan facility. The project creating synergy among the subsidiaries of Doğan Group demonstrates that subsidiaries from different sectors can collaborate to achieve significant endeavors.

Sharing his evaluations on the subject, Doğan Holding CEO Çağlar Göğüş said; “As you're aware, Galata Wind holds significant importance within Doğan Holding. It is a pivotal asset within Doğan Holding's portfolio. Its aim is to escalate its current capacity from approximately 300 to 1000 MW within 4-5 years. In line with this goal, it's swiftly expanding its financial reservoirs and collaborative efforts. The financing agreement we've just signed, marking Proparco's return to Türkiye after a decade, holds considerable value in this regard. We attach great importance to this agreement as it will bolster some of our ongoing projects and pave the way for a long-term partnership. I'm confident that this relationship will continue to flourish moving forward.”

Galata Wind CEO Burak Kuyan, stating that the sustainability conditions of the green loan will make a significant contribution to the company's efforts in this area, said the following: “We are pleased to have secured the first green loan provided by Proparco in Türkiye as Galata Wind. We will utilize the first USD 15 million portion of the USD 25 million loan shortly, and the remaining USD 10 million will be used once the 2nd phase of the Taşpınar Hybrid SPP project is completed. By the end of 2030, we are taking firm steps towards our goal of increasing our portfolio to 1,000 MW with wind, solar and storage electricity projects worth approximately USD 700 million both in Türkiye and abroad.”

Françoise Lombard, CEO of Proparco, added, "We are proud to support Galata Wind Company and the Dogan Group, who are fully committed to the development of renewable energy in Türkiye. The country is at the forefront of innovative renewable energy investments in the Eurasian region. The construction and installation of the solar power plant should help limit Türkiye’s dependency to gas and advance the country’s energy transition"

Hulusi Horozoğlu, CEO of Doğan Investment Bank said, “We are proud to be the financial advisor and coordinator for Galata Wind's investment loan from Proparco. We believe that renewable energy investments are instrumental for Türkiye to achieve its sustainable development goals. This transaction will make valuable contribution to our country's transition to a low-carbon economy and its efforts to combat climate change by financing Galata Wind's renewable energy investments.

As Doğan Investment Bank, we are once again pleased to demonstrate our support for sustainable energy and our determination to contribute to Türkiye's transition to a green economy with this landmark financing facility."

Galata Wind plans to launch the remaining 7 MW in a very short time within the scope of the 17 MW first phase of the approximately 42.5 MW Hybrid SPP in the "Taşpınar Combined Renewable Electricity Generation Facility Project", which includes both WPP and SPP. The 25 MW second phase of the project is expected to be completed by the end of 2024.

About Galata Wind: Galata Wind invests in sustainable energy sources for a clean future and generates 100% renewable energy with Gold Standard and VCS certified wind and solar power plants across Türkiye. Galata Wind, the first green IPO, has been traded on Borsa Istanbul's Stars market since April 2021 and generates 100% renewable, environmentally friendly electricity, resulting in an annual carbon emission reduction of approximately 430,000 tons. With a total installed capacity of 290 MW, Galata Wind's goal is to reduce our country's dependence on foreign energy by using renewable energy resources properly and to become Türkiye’s clean electricity provider with an environmentally friendly, reliable and sustainable business model.

About Proparco: Proparco, a subsidiary of Agence Française de Développement Group, has been working with the private sector for over 45 years for a more just and sustainable world. With an international network of 23 local offices, Proparco works closely with its partners to build sustainable solutions in response to environmental and social challenges in Africa, the Middle East, Asia and Latin America. Proparco benefits from sector-based expertise as well as a wide range of financial solutions tailored to the different stages of business development, notably thanks to its Digital Africa subsidiary, and its Propulse technical assistance offering designed to scale up the impacts and performance of its partners. Proparco's new "Acting together for greater impact” Strategy 2023-2027 enables, strengthens and amplifies the different ways in which it works with its partners.

About Doğan Investment Bank: Doğan Investment Bank is 100% subsidiary of Doğan Holding. As a regional investment bank based in İstanbul, the Bank provides investment banking, structured finance, treasury products and services, cash management and international trade finance services to Turkish and foreign corporate and commercial clients. Doğan Investment Bank operates with the mission of creating sustainable added value for all stakeholders through innovative financial solutions at global standards, knowledge and experience in domestic and international markets, responsible banking philosophy and entrepreneurial culture. 

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