Galata Wind receives USD 25 million green loan from Proparco

published on 25 March 2024
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Signature - Galata Wind
Galata Wind, which invests in renewable energy, has signed, at the occasion of Françoise Lombard’s (CEO of Proparco) first visit in Turkey, a new loan agreement of USD 25 million with Proparco.

For the first time in the last 10 years, Proparco, the private sector subsidiary of the French Development Agency (AFD), has provided a loan to a company operating in the renewable energy sector in Turkey. The loan, which has sustainability conditions specific to Taşpınar Hybrid SPP, will be allocated for the entire project, which has an investment budget of approximately USD 30 million and the first phase of which has been largely completed.

The contract between Galata Wind and Proparco was signed earlier this week by Galata Wind CEO Burak Kuyan and Proparco CEO Françoise Lombard. The financial advisory and coordination role for the credit is assumed by Doğan Yatırım Bankası, a subsidiary of Doğan Holding. The project creating synergy among the subsidiaries of the Doğan Holding demonstrates that subsidiaries from different sectors can collaborate to achieve significant endeavors.

Galata Wind CEO Burak Kuyan, stating that the sustainability conditions of the green loan will make a significant contribution to the company's efforts in this area, said the following: “We are pleased to have secured the first green loan provided by Proparco in Turkey as Galata Wind. We will utilize the first USD 15 million portion of the USD 25 million loan shortly, and the remaining USD 10 million will be used once the 2nd phase of the Taşpınar Hybrid SPP project is completed. By the end of 2030, we are taking firm steps towards our goal of increasing our portfolio to 1,000 MW with wind, solar and storage electricity projects worth approximately USD 700 million both in Turkey and abroad”.

Françoise Lombard, CEO of Proparco, added, "We are proud to support Galata Wind Company and the Dogan Group, who are fully committed to the development of renewable energy in Turkey. The country is at the forefront of innovative renewable energy investments in the Eurasian region. The construction and installation of the solar power plant should help limit Turkey's dependency to gas and advance the country’s energy transition". 

Hulusi Horozoğlu, General Manager of Doğan Investment Bank said, “We are proud to have played the role of financial advisor and coordinator for Galata Wind's investment loan from Proparco. We believe that renewable energy investments are critical for Turkey to achieve its sustainable development goals. The project will make significant contributions to Turkey's transition to a low-carbon economy and its efforts to combat climate change by financing Galata Wind's renewable energy investments. Moreover, we are delighted with the project, which we believe creates synergy between the two holding subsidiaries and demonstrates the potential for collaborations between subsidiaries in different sectors to achieve significant accomplishments. 
As Doğan Investment Bank, we are once again pleased to demonstrate our support for sustainable energy and our determination to contribute to Türkiye's transition to a green economy."

Galata Wind plans to launch the remaining 7 MW in a very short time within the scope of the 17 MW first phase of the approximately 42.5 MW Hybrid SPP in the "Taşpınar Combined Renewable Electricity Generation Facility Project", which includes both WPP and SPP. The 25 MW second phase of the project is expected to be completed by the end of 2024.