WestLB AG and BayernLB arranged a landmark EUR 149.4 Mio ECA Financing for Turcas Elektrik Üretim A.S.
Munich – WestLB AG and BayernLB have signed on November 11, 2010 a EUR 149.4 million, 13 years EULER HERMES covered financing (“Facility”) for Turcas Elektrik Üretim A.S. (” TEUAS”) which is a subsidiary of Turcas Petrol A.S., a major energy group in Turkey.
WestLB AG and BayernLB have acted as joint MLAs and both banks participate in the Facility as lenders with a 50% stake each. BayernLB acts as Facility Agent, WestLB Istanbul Branch as Account Bank for the transaction. The Facility enjoys 95% comprehensive insurance cover provided by EULER HERMES Kreditversicherung AG, Hamburg, acting on behalf and for the account of the Federal Republic of Germany.
TEUAS, together with RWE Turkey Holding A.S. have set-up a JV, i.e. RWE & Turcas Güney Elektrik Üretim AS (“JV”) to build a 775 MW combined cycle power plant (“CCPP”) in Denizli, west part of Turkey. The JV is owned 70% by the leading German utility RWE Group and 30% by TEUAS.
The Facility will finance 85% of the contract values of the equipment and service elements to the CCPP to be provided by Siemens and RWE Technology GmbH which are eligible for EULER HERMES cover, 100% of the EULER HERMES premium and 100% of the interest to be capitalised during construction period. Siemens is sub-supplier to Metka SA, Greece which itself acts as the EPC contractor for the CCPP to be employed by the JV. RWE Technology acts as the Projectmanager on behalf of the JV to execute the main contracts. Hence the Facility will ultimately be utilised to partially re-finance the equity and shareholder debt contribution of TEUAS in the JV.
Up-to-date, this complex ECA supported financing structure is unique and receives already high valuation in the market.
Source: https://www.bayernlb.com