Zorlu Enerji Elektrik Üretim : receives 375 million dollars financing support

Press Release March 2022

Zorlu Enerji receives 375 million dollars financing support

Zorlu Enerji secured $375 million in support from national and international financial institutions to use for its investments in electricity distribution.

To finance its investments in electricity distribution, Zorlu Enerji received a total of 375 million dollars from international financial institutions, including the European Bank for Reconstruction and Development (EBRD), Asian Infrastructure Investment Bank (AIIB), International Finance Corporation (IFC) and Dutch Development Bank (FMO), and Denizbank -which will be repaid in Turkish lira. This long-term financing is fully provided in Turkish lira. It will be used for renewal, modernization, and expansion of the distribution network of Osmangazi Elektrik Dağıtım AŞ (OEDAŞ), Zorlu Enerji's indirect subsidiary, which provides electricity distribution services to Afyonkarahisar, Bilecik, Eskişehir, Kütahya, and Uşak, covering nearly 1.9 million subscribers.

Zorlu Enerji CFO Elif Yener stated that they received financial support for the second time for the expenditures of investment in electricity distribution's network infrastructure, and added:

"I believe that we granted this second financing support due to the trust of the international financial institutions towards the Turkish economy. As Zorlu Enerji, we are glad to implement our long-term borrowing and financing strategy, considering using sustainable resources in the electricity distribution business. We received this loan in Turkish lira currency from the most reputable global financial institutions globally, and we will repay in Turkish lira. This loan will be activated in late 2022 if needed. With an additional $25 million, FMO contributes this load a total of $100 million while AIIB supports it with $75 million, EBRD with $50 million, IFC with $75 million, and Denizbank with $75 million."

Contributing to the national economy with investments

Elif Yener underlined that those leading financial institutions such as AIIB, EBRD, IFC, FMO, and Denizbank provided resources, especially to sustainability-oriented energy projects contributing to the economy. She continued: "With this financial support we received, we will invest in the renewal and expansion of the infrastructure of the Osmangazi Electricity Distribution Region. Afyonkarahisar, Bilecik, Eskişehir, Kütahya, and Uşak provinces will have a stronger electricity distribution infrastructure. Thus, OEDAŞ will not only provide a higher quality service to our citizens. At the same time, we will reduce the rate of energy loss and illegal use of electricity. The efficiency these steps provide will contribute to the economy of our country. Also, as a signatory to the United Nations Global Compact, we fulfill the requirements of the financing institutions that fund our investments. In this context, we conduct all internal and external audits, make environmental-social impact assessments, and implement social investment projects. In addition, we regularly inform our global stakeholders about our investment activities through reports. Within this scope, I am pleased to share with you that we will continue to carry out social projects which we started with the European Bank for Reconstruction and Development to provide equal opportunities for girls."