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KfW IPEX Bank GmbH, the export finance unit of Germany’s state-owned development lender KfW Group, and Landesbank Baden-Wuerttemberg will loan $164.5 million to a Turkish wind farm.
The 14-year loan will finance construction of the 120- megawatt project near Izmir, according to a statement today from KfW-IPEX, based in Frankfurt am Main.
Alto Holding AS is developing the $227 million Karaburun project, which will generate enough power for 100,000 homes starting in 2013. Turkey aims to get 30 percent of its power from renewables by 2023 as it seeks to meet an electricity demand that’s increasing at about 6 percent annually, Economy Minister Zafer Caglayan said in June.
KfW IPEX and Stuttgart-based LBBW contributed “in equal shares” to the syndicated financing. Most of the loan is guaranteed by German export credit insurance company Euler Hermes Deutschland AG, according to the statement.
The project will use turbines made by Enercon GmbH, the Aurich, Germany-based manufacturer. Electricity generated by renewable sources in Turkey is promoted by an off-take price guaranteed for 10 years, according to the statement.
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