EBRD, IFC pay $200m for stake in Akfen renewables arm

The two development banks each committed $100m for a combined 33.4% stake in Turkey’s AkfenRE.

The European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC) have agreed to invest $100 million each in AkfenRE, the renewables arm of the Turkish developer.

The investment gives the two development banks a combined 33.4 percent stake in AkfenRE. The company will use the commitments to build a 210MW pipeline of renewable projects, including wind, solar and hydro, once it receives government approval.

EBRD originally said it was investing $100 million in Akfen for a 20 percent stake in December. However, the company announced this week IFC had also shown interest in investing and renegotiated the deal.

The European development bank has invested almost €2.8 billion in sustainable energy projects in Turkey, which wants to add 61GW of renewable energy to its production mix by 2023. In July provided $180 million in renewable financing to Garanti Bank. EBRD also provided funding for Turkey’s two largest wind farms, the 143MW Bares wind farm and the 135MW Rotor wind farm.

EBRD has set its own goal to double the pace of its sustainable energy and resource financing over the next five years and expects to invest €18 billion in that period.