Investing in EBRD’s region - hollandturkeytrade.com · - 6 non-banks (leasing, ... IFC (USD 66...

© European Bank for Reconstruction and Development 2015

Investing in EBRD’s region:

Turkey, April 2016 Jean-Patrick MARQUET Director, Head of Turkey


Contents

1. INTRODUCTION TO EBRD

2. FINANCIAL INSTITUTIONS

3. INFRASTRUCTURE / PPPS

4. ENERGY AND RENEWABLES

5. CORPORATES: AGRIBUSINESS & GENERAL INDUSTRY

6. CAPITAL MARKETS DEVELOPMENT

7. CONTACTS

2


What is the EBRD?

International financial institution, promotes transition to market economies in 35 countries from central Europe to central Asia.

€30 billion capital. AAA rating from all three main rating agencies.

In 2009, EBRD opened its office in Istanbul. Today, EBRD has offices in Ankara, Istanbul and Gaziantep.

In 2011, the Bank expanded to Egypt, Morocco, Tunisia and Jordan.

In 2014, the EBRD welcomed Cyprus.

In 2015 it was agreed that the Bank will invest in Greece on a temporary basis to support reforms and a return to growth.

In 2016, China became a shareholder of EBRD.

Results in 2015

• €9.4 billion invested in 381 projects

• Private sector accounted for 79% share

• Debt 86%, Equity 14%

EU 27 Countries (1)

58.7%

EBRD region excluding EU

13.8%

Others 8.7%

USA 10.1%

Japan 8.6%

Shareholding structure

(1) Includes European Community and European Investment Bank (EIB)

each at 3%. Among other EU countries: France, Germany, Italy, and

the UK each holds 8.6%

3


Where we invest

4


EBRD projects span every sector

Transport Municipal & Environmental

Infrastructure

Property & Tourism

Financial Institutions Natural Resources Telecommunications,

Informatics & Media

Industry, Commerce

& Agribusiness

Manufacturing

& Services

Power & Energy

5


EBRD Global YE2015

Number of projects to date 4,485

Net cumulative Bank investment EUR 107bn

Private Share 79 per cent

EBRD TURKEY YE2015

Number of projects to date 182

Net cumulative Bank investment EUR 7.3bn

Private Share 97 per cent

20%

7%

9%

15% 20%

15%

13% S.E. Europe

SEMED

Central Asia

Central Europe

E.E. Caucasus

Turkey

Russia

13%

43% 23%

21% Energy

FI

Ind. Comm. & Agribusiness

Infrastructure

EBRD business snapshot

6


DECENTRALISED BUSINESS MODEL

3 offices : Istanbul, Ankara, Gaziantep

90 staff on the ground

Includes: bankers, lawyers, engineers,

technical assistance staff

CAPITAL MOBILISATION

EBRD’s over €7 billion investment in Turkey

since 2009 has additionally mobilised €16

billion in total capital.

“Every EBRD euro is supplemented by €2.5

from other sources”

The EBRD has had some great successes in

Turkey, and we see great opportunities for

further investments that will generate wealth

and improve people’s lives.

NEW OPERATIONAL PRIORITIES (2015 – 2019)

Our operational priorities are:

i. Enhancing energy security and

sustainability by supporting sector reform,

promoting energy efficiency and

renewable energy

ii. Improving the quality of infrastructure via

commercialisation and private sector

participation

iii. Scaling up private sector competitiveness

through innovation and improved

corporate governance

iv. Promoting regional and youth inclusion, as

well as gender equality, to support long-

run growth potential

v. Deepening capital and local currency

money markets

EBRD priorities in Turkey

7

© European Bank for Reconstruction and Development 2015 8

EC donor funds have represented 80% of all donor funds mobilised by EBRD in Turkey

With €67m contributed by the EC across 2009-2015 and €6.8bn invested by EBRD,

EC donor funds have achieved a 100x leverage ratio

EU donor input in EBRD business in Turkey

TURKEY - TC and non-TC grant commitments since inception

EURm 2009 2010 2011 2012 2013 2014 2015Grand

Total

EU TC funds TC 1 6 4 2 1 12 27

EU non-TC funds Non-TC 0 0 3 0 37 0 40

EU Donor Funds Total 0 1 6 7 2 38 12 67

EBRD Investment 150 494 890 1,049 920 1,394 1,900 6,797

Mobilisation ratio - 928x 143x 146x 409x 36x 154x 102x


Contents







7. CONTACTS

9


EBRD Turkey Financial Institutions

13/04/2016

• Total FI investments in Turkey: >€3 bn

• Wide coverage of financial products:

- Debt (structured, senior unsecured, sub-

ordinated, trade finance)

- Equity

• Cooperation with various 19 FIs:

- 12 banks

- 6 non-banks (leasing, factoring, insurance,

asset management)

- 1 stock exchange

• Priorities:

- SMEs: industrial, agribusiness

- Sustainable energy: Turseff, Midseff, Tureef

- Inclusion: Women in Business

- Capital markets: bonds, equities

• Active policy dialogue and collaboration

with regulator


$285 million facility ($50 million from

the Clean Technology Fund) launched

in 2010 for small investments (below

$5 million) in:

• SME Energy Efficiency

• Commercial EE

• Residential EE

• Small Scale Renewables

Loan Breakdown by Technology:

67% Energy Efficiency 33% Renewable Energy

Loan

Amount,

($ mln)

Total Investment

($ mln)

Number of Sub-

Projects

Primary energy

savings

(toe/year)

Annual GHG

savings (tonnes

CO2eq/year)

Avoided oil

imports

($ mln/year)

265 464 370 232,000 645,000 145

TurSEFF MidSEFF Direct Lending

Turkey Private Sector SEFF:

Small scale EE & RE investments

13/04/2016

http://www.turseff.org/en/home.html

© European Bank for Reconstruction and Development 2015 12

€1 billion facility, commercially structured

through DPR launched in 2011 for €5 – 50

million sub-investments in:

• Renewable Energy

• Energy Efficiency

• Waste-to-Energy

+ EU environmental & social standards

+ Support in Carbon Market development

Loan

Amount,

(€ mln)

Total Investment

(€ mln)

Number of Sub-

Projects

RE generated

(TWh/year)

Annual GHG

savings (tonnes

CO2eq/year)

Avoided oil

imports

(€ mln/year)

715 1,100 42 2.3 1.35 million 383

TurSEFF MidSEFF Direct Lending

Mid-Size SEFF

Scaling-up renewables

13/04/2016

http://www.midseff.com/index.html

© European Bank for Reconstruction and Development 2015 13/04/2016

This programme is funded by the European Union, the EBRD and the Republic of Turkey

Women in Business

Financing

• Dedicated credit lines of up to €300

million to be provided to partner banks

• First loss risk cover of up to €30

million

• Technical assistance to partner banks

of up to €3million

• Business advice and business

• Development services for women-led

SMEs of up to €5 million

Advice for Women in Business

Women in Business Financing

• €175 million disbursed to 4 partner banks

Vakifbank, Finansbank, Isbank and TEB

• €70 million allocated to women-led SMEs

Finance and Advice for Women in Business


Contents







7. CONTACTS

14


Transport / PPPs

AIRPORTS

Many private airports:

Istanbul Ataturk, Sabiha Gokcen, and

Third Airport

Ankara Esenboga

Izmir Adnan Menderes (EBRD loan)

Dalaman (EBRD loan).

Turkish operators: TAV (38% ADP), YDA, IC Ictas.

Future projects: regional airports:

1. Samsun/Carsamba (ca. €100m)

2. Nevsehir/Cappadoccia (ca. €100m).

3. Mersin-Adana/Cukurova (€350-450m).

PORTS

Privatisations to date through “Transfer of

Operating Rights” for 36 years.

Examples: Mersin (EBRD bond), Asya (EBRD

loan), etc.

15

ROADS

Three PPPs to date:

1. Eurasia Tunnel (€150m EBRD loan)

2. Gebze-Izmir motorway (Astaldi)

3. 3rd Bosphorus Bridge (IC Holding/Astaldi).

Future projects:

o North Marmara Motorway (tender 2Q2016)

o 2nd Istanbul Tunnel

o Canakkale suspension bridge

RAILWAYS

State Railways (TCDD) monopoly up to now, but

Liberalisation legislation in place, however no

secondary legislation yet, hence no implementation.

Government 2016 action plan includes opening up:

o Third-party access for private rolling stock

o 49 years concessions for private developers of

new railway lines


Case Studies Transport – Eurasia Tunnel

Industry Recognition 2012

Infrastructure Deal of the Year

BORROWER: Avrasya Tuneli Isletme Insaat ve Yatirim A.S.

SPONSORS: Yapi Merkezi and SK E&C Group

TYPE OF PPP CONTRACT: Build – Operate – Transfer (BOT) (30.5y concession incld. 55m

construction period)

ADMINISTRATION/ GRANTOR Ministry of Transportation, General Directorate of Railways,

Seaports and Airports Construction, Republic of Turkey (DLH)

EBRD FINANCE: EUR 137.2 million (equivalent of USD 150 million)

TYPE OF FINANCE: Senior Loan

TOTAL PROJECT COST: EUR 1,139.3 million

YEAR: 2012

OTHER SENIOR LENDERS: EIB (USD 150m), KEXIM (USD 250m) Direct Facilities

SMBC, Standard Chartered, Mizuho under Kexim Cover (USD30m)

and Ksure Cover (USD180m)

PROJECT DESCRIPTION: The project is a design, finance-build-operate and transfer

concession for the Istanbul Strait Road Tube Crossing

IMPACT: It was an advanced BOT model developed for large

infrastructure projects, having direct agreement with Ministry of

Transport and Debt assumption by Turkish Treasury in case of

termination. This model has used later on Gebze – Izmir highway

and 3rd Bosporus Bridge project.

EBRD Sustainability Award 2015

Infrastructure Deal of the Year

16


Case Studies Transport – Mersin International Port

BORROWER: Mersin International Port

SPONSOR: Akfen Holding A.S.

TYPE OF PPP CONTRACT: Privatization through 36-year concession (Transfer of operation of rights)

EBRD FINANCE: USD 79.5 million (equivalent of EUR 61.2 million)

TYPE OF FINANCE: Eurobond denominated in USD

TOTAL PROJECT COST: USD 737 million (equivalent of EUR 690 million)

YEAR: 2013

OTHER PARTICIPANTS: IFC (USD 66 million) Clifford Capital (USD 79.5 million)

PROJECT DESCRIPTION: First Eurobond transaction from Turkey since early May 2013: the deal

reopens the market for Turkish borrowers

First-ever infrastructure bond for Turkey

IMPACT: The Project is the first Eurobond issue by an infrastructure project

company in Turkey representing innovation in the Turkish market for

infrastructure companies and successful placement will contribute

substantially to the development of the capital markets and demonstrate

new ways of financing for infrastructure investments by encouraging

companies to diversify their source of funding through the

development/creation of the corporate/project bonds market.


Port Deal of the Year (MEA)

17

http://en.mersinport.com.tr/default.aspx


BORROWER: YDA Havalimani Yatirim ve Isletme A.S.

SPONSOR: YDA Insaat Sanayi ve Ticaret A.S.

ADMINISTRATION Ministry of Transportation, DHMI (Airport Authority)

TYPE OF PPP CONTRACT: 25-year concession (until 2040)

EBRD FINANCE: EUR 162 million (EUR 81 A Loan / EUR 81 B Loan (UniCredit))


TOTAL PROJECT COST: EUR 385.2 million (55% equity and IGC, 45% debt)

YEAR: 2015

PROJECT DESCRIPTION: Financing the construction of a new domestic terminal for the Dalaman

Airport including ancillary facilities in accordance with the concession

agreement.

IMPACT: The new concession contract at Dalaman Airport removes all annual

passenger traffic guarantees and hence shifts the entire traffic risk to

the private concessionaire. This new model with more risk transferred

to the private sector is expected to have demonstration effects in terms

of future airport PPP structures in Turkey based on full traffic risk.

Assessment of energy and sustainability performance and any gaps,

definition of a set of indicators and development of a toolkit with

specific and achievable benchmarks and elements for improved

sustainability for Dalaman Airport at each transition stage.

This is the first regional airport

PPP financed by the Bank in

Turkey.

Case Studies Transport – Dalaman Airport

18


Social Infra / PPPs

TURKISH PPP HOSPITALS

60 new hospitals with 50,000 high-quality

hospital beds for of up to €12bn. 17 hospital

PPPs already awarded (Phase 1), for €6 bn.

Phase 2 tenders have started mid -2015.

Facility Management only. Clinical services

remain with MoH.

28.5 years PPPs incl. construction 3.5 years.

EBRD INVOLVEMENT AND SUPPORT

Framework envelop of €600m debt or equity.

Advisory role over 24 months to make the PPP

contracts bankable

Technical cooperation support to MoH for Value

for Money Methodology and PPP Contract

Implementation and Monitoring unit.

3 projects signed under the Framework to date:

i. Adana Hospital (Ronesans/Meridiam)

ii. Ankara Etlik Hospital (Astaldi Turkerler)

iii. Konya Hospital (YDA)

FUTURE SCHOOL PPPS?

Government strategy for 90 education campus

projects.

As the total project cost of each project is in the

range of TL 100-150m, MoEdu is planning to

make project packages made up of 4-5

campuses close to each other in each package

with a total size of TL500m.

The expected contract term would be 20 years,

after an estimated construction period of 2.5

years.

The programme is expected to come to the

market in late 2016.


EBRD offered 2 technical cooperation

assignments to support the PPP programme.

Once the PPP scheme is properly established and

the successful tenders are in place, the EBRD will

be looking to finance the private operators.

19


Case Studies Social Infra – Etlik Hospital PPP

BORROWER: Ankara Etlik Hastane Saglik Hizmetleri A.S.

SPONSORS: Astaldi (51%) – Turkerler (49%)

TYPE OF PPP CONTRACT: Design – Build – Finance – Lease - Transfer (DBFLT)

PROJECT DESCRIPTION: Design, construction, equipping, financing and maintenance of an

integrated health campus in Adana, Turkey.

NUMBER OF BEDS: 3,566

TOTAL PROJECT COST: €1.1 bn

TYPE OF FINANCE: Project Financing/Senior Loan

EBRD FINANCE: € 125 m A-Loan/€ 131 m B-Loan

DEAL SIGNED: 2015

LENDERS: EBRD, IFC, BSTDB, DEG (A- Lenders) – Credit Agricole, Unicredit,

Banca IMI, Deutsche Bank(B-Lenders) – Isbank, TSKB, Akbank

(Commercial Lender).

IMPACT: The largest public-private project to be financed to date under

the Turkish government’s €12 billion programme to build or

expand about 60 hospitals across the country in collaboration

with the private sector.

The giant complex is expected to deliver better hospital facilities

for the Turkish capital and central Anatolia, a region with about

12 million people.

20


Case Studies Social Infra – Adana Hospital PPP

BORROWER: ADN PPP Saglik Yatirim A.S.

SPONSORS: Ronesans (40%) – Meridiam (40%) – Sila (10%) – Sam (10%)

TYPE OF PPP CONTRACT: Design – Build – Finance – Lease - Transfer (DBFLT)

PROJECT DESCRIPTION: Design, construction, equipping, financing and maintenance of an

integrated health campus in Adana, Turkey.

NUMBER OF BEDS: 1,550

TOTAL PROJECT COST: €542 m

TYPE OF FINANCE: Project Financing/Senior Loan

EBRD FINANCE: € 115 m A-Loan/€ 100 m B-Loan

DEAL SIGNED: 2014

LENDERS: EBRD, IFC, DEG, Proparco (A- Lenders) – KDB, BBVA, HSBC, Siemens (B-

Lenders) – SMBC (Commercial Lender).

IMPACT: The project is one of the first hospital facilities management PPPs in

Turkey to reach financial closure, setting a benchmark for international

best practice.

It is also a pioneer project for the Turkish government’s €12bn

Hospital PPP Programme, which aims to build 60 hospitals giving a

total capacity of 50,000 beds across the country in collaboration with

the private sector.


Euromoney Project Finance

European PPP Deal of the Year

21


Environment / PPPs

WASTEWATER PPPS

Municipal WW: 40 municipalities do not have any

WWTPs at all. MoEnv looking to apply the PPP

Scheme to WWTP. First pilot: Denizli Municipality

(700,000 inhabitants) has sought the support of

EBRD for the preparation and financing of a

750,000m2/d WWTP PPP.

Industrial WW: Organised Industrial Zones


Existing project: Dilovasi industrial WW BoT

o Akfen Water and Tahal, 27 years contract

o €14m project, €11m EBRD loan

EBRD technical cooperation to Denizli :

i. Value for Money analysis: to provide a

detailed feasibility and VfM.

ii. Legal support: to enable PPPs.

EBRD will look at financing the operator.

22

FUTURE SOLID WASTE PPPS?

64 cities facing severe SW-related environmental

issues. Chronic lack of investment. No separation

at source hence low quality SW.

Two private operators of WTE facilities:

o ITC (8 gasification facilities across Turkey,

4.4Mt SW, 400M kWh electricity)

o Hexagon (Pamukova anaerobic digester,

60kt SW)


Initial steps to prepare a solid waste PPP in Izmir:

€110m modern integrated waste management

plant for 2,100 tonnes/day with recycling, energy

generation and biogas production.

EBRD technical assistance for feasibility study,

procurement support and city corporate

development.


Case Studies Industrial Wastewater – Dilovasi WWTP BoT

BORROWER: Afken Su Arbiogaz Dilovasi

SPONSORS: Afken Water - 75% (JV between Tahal/Kardan N.V.- 50% and Afken

Holding- 50%)

Arbiogaz - 25%

TYPE OF PPP CONTRACT: BOT 27 years

PROJECT DESCRIPTION: Construction and operation of Wastewater Treatment Plant and

Main Collector Line in Dilovasi Organized Industrial Zone (OIZ)

CAPACITY: 21,144 m3/day

TOTAL PROJECT COST: €14m

TYPE OF FINANCE: Project Financing/ 10 years Senior Loan

EBRD FINANCE: € 10.5m

DEAL SIGNED: 2010

LENDER: EBRD

IMPACT: The Project is servicing (i) the second largest Organized

Industrial Zone (OIZ) in Turkey, with an area covering 822ha and

4 industrial marine ports within its vicinities, consisting of 210

factories and room for 500 additional factories; (ii) the 43,000

inhabitants of Dilovasi town.

• OIZ guarantees annual minimum wastewater volume and tariff:

1.325 €/m3 for the first 11 year, 0,825 €/m3 for the rest of the

operation period.

23


Contents







7. CONTACTS

24


Energy and Renewables

ELECTRICITY MARKET

6th largest electricity market in Europe, with

CAGR of 8% since the 1980s.

The sector is largely unbundled and is overseen

by an independent regulator. Since 2006 Turkey

has open day-ahead, intraday and balancing

market allowing for real time balancing of

supply and demand.

However, substantial presence of state owned

companies. EUAS (generation) for 30%, TEIAS

(transmission) for 100%, TETAS (wholesale

market) as dominant supplier.

Distribution is fully privatised.

The Turkish government’s strategy is to

encourage the use of renewable, lignite and

nuclear in order to reduce dependence on

imported energy.

However, gas will continue to constitute a

substantial part of the generation.

RENEWABLES

Mostly Hydro, Wind and Geothermal.

Renewables shall reach 30 per cent by 2023.

Renewables enjoy a FiT of

USD 73/MWh for HPPs/WPPs,

USD 105/MWh for geothermal

USD 133/MWh for solar/biomass

plus bonuses for local content .

Hydros represent 1/3 of installed capacity but

less than 1/4 of the overall generation. No

specific benefits in terms of offtake/PPA.

High demand for solar energy tenders totalling

600 MW in the first half of 2015, both licensed

and unlicensed solar plants (<1MW).

25


Case Studies Energy and renewables – Rotor Wind Farm

CLIENT: Rotor Elektrik Uretim A.S.

SPONSOR: Zorlu Enerji Electric Generation Company

TYPE OF LICENCE: Generation Licence provided by EMRA (Energy Regulatory Authority)

EBRD FINANCE: EUR 45 million


TOTAL PROJECT COST: EUR 213.9 million

The remainder of the required financing is provided through parallel

loans by IFC (EUR 55 million) and EIB (EUR 30 million guaranteed by

Denizbank (EUR 20 million) and HSBC (EUR 10 million))

YEAR: 2010

PROJECT DESCRIPTION: Development of a greenfield 135 MW onshore wind independent power

project located in Osmaniye in Southern Turkey, which became the

largest WPP in Turkey on commissioning.

IMPACT: Deepening the extent of then nascent Turkish power market by

becoming the first large scale wind project in Turkey developed on a

project finance basis

The Project benefits from a FiT of USD 73/MWh for 10 years,

comprehensive security package typical for project finance and step-in

rights for the lenders. However, the project has elected each year to

sell its output in the day ahead market or through bilateral contracts at

higher prices, thus acting as a fully merchant project.

Industry Recognition:

Project Finance Magazine -

European Onshore Wind Deal of

the Year 2009

26


Case Studies Energy and renewables – Kirikkale CCGT

BORROWER: Acwa Güç Elektrik Işletme ve Yönetim Sanayi ve Ticaret A.Ş

SPONSORS: Acwa Power International


EBRD FINANCE: USD 200 million


TOTAL PROJECT COST:

OTHER SENIOR LENDERS:

USD 1.05 million

Korea EximBank, IFC, Korea Development Bank, Standard Chartered and

Akbanak

YEAR: 2012 - 2014

PROJECT DESCRIPTION: Development of a greenfield 928MW independent power plant to be

structured on a merchant basis and located 50km east of Ankara, near

the city of Kirikkale, Turkey.

IMPACT: The project’s impact stems from three factors:

Market expansion through sale of electricity through a combination of

private off take agreements, to eligible customers and to the

Balancing Market where market dynamics dictate the price; and

More widespread private ownership through supporting a privately

developed project in Turkey where the state still holds a significant

share in electricity generation.

No state support in the form of floor tariff mechanism in hard currency

(Full merchant risk)

Industry Recognition

2014 PFI MENA Power Deal of

the Year

2014 EMEA Best Power Deal CEE

2014 EMEA Best Project Finance

deal for CEE

27


Case Studies Energy and renewables – Efeler GPP

BORROWER: Gurmat Elektrik

SPONSOR: Guris Insaat ve Muhendislik A.S.


EBRD FINANCE: USD 200 million


TOTAL PROJECT COST:

OTHER SENIOR LENDERS

USD 1 billion (Debt: 72% and Equity 28%)

Parallel loans by Türkiye İş Bankası AŞ (USD 325 million), Turkiye Sınai

Kalkınma Bankası A.S. (USD 130 million) and Black Sea Trade and

Development Bank (USD 65 million).

YEAR: 2015

PROJECT DESCRIPTION: Development of a 170 MW Greenfield geothermal power plant located in

Aydin-Germencik province, Turkey.

IMPACT: The longest tenor financing for a geothermal/renewable project in

Turkey (15 years) with a merchant tail.

Significant contribution to both current geothermal capacity and the

governments’ strategic targets for renewables.

The Project benefits from a FiT of USD 105/MWh for 10 years,

comprehensive security package typical for project finance and step-in

rights for the lenders.

Largest geothermal plant in Turkey, 2nd largest in Europe and in top-10

in the world.

28


Contents







7. CONTACTS

29


Agribusiness and General Industry

AGRIBUSINESS

Agribusiness contributes 7.4% to the country’s

GDP and comprising 23.6% of the active

labour force (2013).

Turkey is the 7th largest agricultural producer

of the world and actively trades in the world

market. In 2013, raw agricultural products

faced a $1.9 billion trade deficit.

Activities throughout the production chain,

from farming, processing and trading to food

distribution, packaging and retail.

EBRD policy dialogue to promote market-

oriented policies. EBRD currently working with

the Ministry of Food, Agriculture and Livestock

on a comprehensive mapping study of all the

existing support mechanisms in the

agribusiness sector in Turkey.

GENERAL INDUSTRY

Mix of blue chips and family-owned “Mittelstand”.

Many JVs with international companies e.g. Renault.

Dynamic sector but need to move up the value chain

trough R&D (develop links with universities and

research centres) and partnerships with foreign

companies (integrate in the global value chain).

Squeeze effect of the terms of trade and finance at

present with weak EUR depressing the value of

exports (driven by ECB quantitative easing) and

strong US$ increasing the debt burden (most

corporate debt in US$).

Progress needed as regards corporate governance

(family ownership and management), disclosure and

standards as prerequisite to access the equity capital

markets.

Insufficient access to debt capital markets (very

narrow corporate bond market and 75% of the bonds

are 1 year or shorter).

30


Case Studies Agribusiness – Uludağ

BORROWER: Erbak-Uludağ İçecek A.Ş


TYPE OF FINANCE: Long-term loan

TOTAL PROJECT COST: EUR 30 million

YEAR: 2014

PROJECT DESCRIPTION: Uludağ is one of the oldest and largest producers of branded soft

drinks in Turkey, its 102-year history dating back to 1912.

The Project is supporting the company’s 2014-15 investment

programme which includes the launch of new, state-of-the-art

production facilities and measures to increase resource

efficiency.

IMPACT: The project supports i) procurement of new production facilities,

which includes innovative technology to improve the quality and

lifespan of its products and ii) Energy efficiency improvements.

31


Project

Summary

Case Studies Industry - Ford Otosan

Client

Ford Otosan is a JV between Ford Motor Corporation

and Koc Group. It is one of the largest motor vehicle

manufacturers and domestic industry leader in Turkey

with sales at c. €4 bn in 2013.

EBRD Finance

EBRD arranged a syndicated loan of €140 million

through an A/B structure. €70 million for the EBRD

account and the rest was syndicated to commercial

banks.

Use of Proceeds

The Project will finance the development of a new

Ecotorq engine to be used in heavy Ford Cargo trucks,

and other R&D activities in Turkey. Ford Otosan has the

largest private R&D center in Turkey employing around

1,300 engineers.

EBRD value added

The Bank’s financing will support innovation and

research and development (R&D) stemming from

collaboration between industry, local academia and

local suppliers. The Project will also set new corporate

human resources standards in the industry in relation

to inclusion and gender equality.

2014 Signed in

32


Project

Summary

Case Studies Industry - Sisecam

Client

Sisecam is one of the largest glass producers in the

world active in all key areas of glassmaking; flat glass,

glassware, glass packaging, and glass chemicals.

Isbank controls 72% of the Company’s shares, whereas

28% are listed on Istanbul Stock Exchange.

EBRD Finance

In September 2014, EBRD provided Euro 30 million

long-term loan to Sisecam.

Use of Proceeds

The loan financed a series of resource efficiency

investments and a glass recycling project in Turkey.

EBRD value added

With the implementation of new energy and

environment management standards, the Company one

of the best glass producers in the region.

In addition, EBRD will provide technical support for the

implementation of energy efficiency and environmental

investments and expertise in the glass and corporate

energy efficiency sectors.

2014 Signed in

33


Project

Summary

Case Studies Industry - Vestel Electronics

Client

Vestel is one of the leading consumer electronics and

white goods manufacturers in Europe which designs

and manufactures products for global brands. Zorlu

Holding owns a 78 per cent controlling stake in Vestel,

while the remaining 22 per cent is free floating on the

Borsa Istanbul.

EBRD Finance

In 2015, EBRD provided Euro 50 million long-term loan

finance for R&D on the next generation of TV sets and

LED products.

Use of Proceeds

The loan financed a series of investments in Research,

Development and Innovation (RDI) activities.

EBRD value added

The Bank’s financing will assist shifting the company’s

focus in R&D from adaptation of new technologies to

conducting research in new technologies that will result

in reducing costs, improving efficiency, increasing profit

margins and decreasing dependence on foreign

suppliers. The project will also lead to the transfer and

dispersion of skills by strengthening linkages with local

academic institutions.

2015 Signed in

34


Project

Summary

Case Studies Industry - Aksa Akrilik

Client

Aksa Akrilik is one of the largest acrylic fibre manufacturers

in the world. Majority of Aksa Akrilik is owned by Akkok

Group and it is listed on Borsa Istanbul.

EBRD Finance

In March 2015, EBRD provided Euro 50 million long-term

loan to Aksa Akrilik.

Use of Proceeds

The loan financed a series of environmental, health and

safety, resource efficiency and new product investments at

the company’s manufacturing facility in Yalova, in

northwestern Turkey.

EBRD value added

With the implementation of new health and safety

standards, the Company will be the first company in the

chemicals industry in Turkey compliant with the EU SEVESO

Directive, an EU directive aimed at safeguarding sites

containing large quantities of hazardous and dangerous

substances.

In addition, the EBRD loan will finance the construction of a

wastewater treatment facility. The facility, which will also be

used by other companies nearby, will reduce wastewater

discharge in the region and increase the amount of

recycled water.

2015 Signed in

35


Project

Summary

Case Studies Industry - Ege Profil

Client

Ege Profil is a leading PVC profile manufacturer in

Turkey. Deceuninck NV, a leading Belgian PVC window

systems and building products manufacturer, holds

98% of the shares of the Company, while the rest are

listed on Borsa Istanbul.

EBRD Finance

In September 2015, EBRD provided Euro 25 million

long-term loan to Ege Profil.

Use of Proceeds

The loan will finance the construction of a PVC profile

manufacturing plant in Izmir including energy and

resource efficiency investments.

EBRD value added

The loan will be extended under the EBRD’s new Near-

Zero Waste programme which finances waste

minimisation projects in Turkey.

EBRD will provide support in establishing the necessary

framework to accelerate PVC recycling in Turkey, setting

standards for energy efficiency and better

environmental performance.

2015 Signed in

36


Case Studies Telecom – Turk Telekom

BORROWER: Turk Telekom A.S


TYPE OF FINANCE: Corporate Loan

TOTAL PROJECT COST: EUR 176 million

YEAR: 2012

PROJECT DESCRIPTION: A loan to Türk Telekom, the incumbent operator and leading

communication and convergence technology group in Turkey. The

financing is being used to support the expansion of reach and

capacity of Türk Telekom’s fixed broadband networks in the

eastern provinces of Turkey which will allow the company to provide

high-quality broadband internet services to its customers.

IMPACT: The project addresses the lack of sufficient broadband

infrastructure and growing demand for broadband internet access

from individuals and small and medium businesses in the remote

regions of Turkey. Today, the fixed broadband penetration in these

regions is still lagging behind the rest of the country due to limited

investments in infrastructure from telecom operators. Improving

the access to broadband internet, an important part of the

essential information infrastructure, is crucial for the development

of the knowledge-based economy in those remote regions and the

country as a whole.

37


Case Studies E-commerce – HepsiBurada.com

BORROWER: D-Market Elektronik Hizmetler ve Ticaret A.S.

EBRD FINANCE: USD 15M

TYPE OF FINANCE: Equity Investment

TOTAL PROJECT COST: USD 112M million

YEAR: 2015

PROJECT DESCRIPTION: An equity investment into HepsiBurada.com, Turkey’s largest

ecommerce property. Hepsiburada is the Amazon of Turkey with

thousands of orders delivered to every corner of Turkey daily.

IMPACT: EBRD investment will be used to optimize the logistics

infrastructure, including a purpose built warehouse for the online

retail sector. This is expected to lead to high operational synergies.

The resulting improvements will provide a demonstration effect to

other players in the e-commerce sector which operate through a

different delivery model with several distribution warehouses at

the same time.

38


Contents







7. CONTACTS

39


Capital markets development

EQUITY

Shallow market: ca. 30% of GDP (vs. 100%

Germany, 250% UK).

Governance issues in family ownership culture.

However need for more equity to manage

leverage and to have a ‘currency’ to form

partnership (esp. with FDI).

EBRD market development efforts are 3-fold:

1. Equity investments in selected companies

with a view to doing an IPO within 3-5

years (2015: €450m equity investment in

12 companies)

2. Technical assistance to Capital Markets

Board to promote corporate governance

standards.

3. Acquisition of 10% of Borsa Istanbul and

nominee director at the board to support

development of the exchange and

international expansion

DEBT

Narrow debt capital markets due to limited pool of

savings in Turkey.

Bond market dominated by state issuance and

quasi inexistent corporate bond market (only 7% of

total private sector market).

Short maturities inadequate to finance investment

(75% of the bonds are 1 year or shorter).

Low transparency and deficient rating system

(‘qualified investor’ market).

EBRD market development efforts are 3-fold:

1. Subscription to bonds issued by selected

companies with longer maturity

2. Policy dialogue with Capital Markets Board

to promote higher disclosure and

transparency.

3. Policy dialogue with Treasury and Central

Bank to reform the money market index and

open up the market to international capital.

40


Project

Summary

Case Studies Industry - Pasabahce

Client

Pasabahce is the third largest player in the glassware

industry worldwide, and is a subsidiary of Sisecam –

one of the leading glass producers in the world and a

long-time client of the EBRD.

EBRD Finance

EBRD invested €125 million in equity with Pasabahce.

Use of Proceeds

The EBRD funds will be used in various EBRD countries

of operation to invest in operational efficiencies and

energy efficiency and in capital expenditures.

EBRD value added

As a pre-IPO investment, the EBRD will actively support

higher corporate governance and support the listing

efforts of the Company.

2014 Signed in

41


Case Studies Energy – Akfen Renewable Energy Equity

CLIENT: Akfen Renewable Energy, part of Akfen Holding

EBRD FINANCE: $100 million

TYPE OF FINANCE: 20% Equity Stake

YEAR: 2015

PROJECT DESCRIPTION: Subscription to new shares to finance the development of assets

already licensed.

IMPACT: Portfolio of renewable projects, including operational hydro and

solar power plants as well as several wind, solar and hydro projects

under development.

Objective to triple the size of installed capacity to 500MW.

Pre-IPO investment: the EBRD will actively support higher corporate

governance and the listing efforts of the Company.

42


Case Studies Construction – Ronesans Holding TL bond

BORROWER: Ronesans Holding

EBRD FINANCE: TL100 million

TYPE OF FINANCE: Corporate bond

TOTAL PROJECT COST: TL200million

YEAR: 2016

PROJECT DESCRIPTION: Subscription to a senior unsecured corporate bond in local

currency, based on the TL TRLIBOR interest rate index.

IMPACT: EBRD subscribing only in the 3-years tranche, hence increasing the

maturity of Ronesans’ corporate debt.

First ever TL bond based on TRLIBOR, an interest rate index that

international investor can access and hedge, hence opening up the

market.

Bond intended to finance Ronesans’ equity contribution to the

Elazig Hospital PPP project

43


Contents







7. CONTACTS

44


Contacts

For all further enquiries,

please contact:

Jean-Patrick MARQUET

Director, Turkey

T: +90 212 386 1100

E: [email protected]

EBRD Turkey Office

Buyukdere Caddesi, 185

Kanyon Ofis, Kat: 2

34394, Levent

Istanbul, Turkey

www.ebrd.com

45

mailto:[email protected]

http://www.ebrd.com/

Date post:	17-Jun-2018
Category:	Documents
Upload:	donhan
View:	215 times
Download:	0 times

Investing in EBRD’s region - hollandturkeytrade.com · - 6 non-banks (leasing, ... IFC (USD 66...

Documents