UK Export Finance (UKEF) and KUKE, UK and Polish export credit agencies, have guaranteed a €249 million (£213 million) loan to Turkish renewable energy investment company Kalyon Enerji.
The loan, provided by the UK’s Standard Chartered Bank, will see the construction and operation of solar power plants at seven separate sites across three Turkish provinces, with an aggregate generation capacity of 390MWp.
The financing means that Kalyon Enerji will be able to pay for the exports provided by the UK and Poland over a longer period while supporting jobs in the renewable energy sector supply chain at home. British exporter GE Vernova—via its subsidiary UK Grid Solutions—will supply and install inverter stations, power-plant controllers, and other critical equipment.
Standard Chartered acted as structuring bank, green loan coordinator, lead arranger and lender. The financing is guaranteed by a 100% UKEF guarantee, with over €122 million reinsured by KUKE.
The company says this is expected to directly support British jobs at GE Vernova’s Staffordshire site and jobs in the wider UK supply chain.
Establishing supply chains in the country is a key element of Labour’s promise to deliver the UK’s transition to net zero. UKEF supports UK-based companies in expanding their portfolios abroad: it says it has has helped UK firms – primarily small and medium enterprises – to access over £325 million in working capital since its launch in 2020.
Gareth Thomas, UK minister for exports, said: “Our mission is to grow the economy, including through boosting exports so British businesses can sell their world-class goods and services around the world.
“This announcement will support jobs and businesses across the country, especially in the Midlands, and support the global transition toward cleaner energy.”
This article was originally published by our sister site, Solar Power Portal.
