World Bank unit becomes shareholder in Turkey’s Akfen Energy to boost renewable energy

ISTANBUL

IFC, a member of the World Bank Group, has said it is becoming a shareholder of renewable energy company Akfen Energy as part of an effort to ramp up the production of clean power in Turkey.

IFC is investing $100 million in Akfen Energy, a subsidiary of Akfen Holding, to acquire a 16.67 percent stake in the company, it said in a written statement on June 24.

The investment will help Akfen Energy to almost triple its renewable energy production, according to the statement.

The company operates solar- and hydro-power plants and is expanding into wind farms.

“IFC’s investment is designed to support Turkey’s emerging clean energy industry, help the country reduce its reliance on climate-changing fossil fuels, and bolster domestic power supplies,” added the statement.

“We aim to become a leading player in the renewables market in Turkey and IFC’s equity investment in our company provides strong support to realize this goal,” said Akfen Holding Chairman Hamdi Akın.

“We are in the process of creating a new platform for all investors in renewable energy, which will utilize Turkey’s local renewable energy resources with sustainable generation in all segments of the energy sector,” he added.

IFC has a long-standing partnership with Akfen Holding, a multinational corporation. IFC has supported several projects spearheaded by the company, including the Mersin International Port Eurobond issue and the construction of TAV Tbilisi Airport.

After the closing procedures, as shareholder in Akfen Energy, IFC will nominate a board member to the company, further improving the company’s corporate governance.

“Renewable energy is a key and sustainable solution to meet ever-growing energy demand and Turkey benefits from a wealth of renewable energy resources,” said Dimitris Tsitsiragos, the IFC vice president of global client services.

“The private sector has a significant role to play in supporting Turkey’s targets in utilizing these resources. We are happy to extend our strong relationship with Akfen into the energy sector and to continue to contribute to the company’s efforts to bolster renewable energy production,” he added.

This is IFC’s third equity investment in Turkey’s power sector and is designed to help the country reach its goal of generating 30 percent of its energy from renewable sources by 2023, according to the statement.