The Asian Infrastructure Investment Bank (AIIB) and the Industrial Development Bank of Türkiye (TSKB) have signed a USD65-million senior debt financing package to support the YEKA Erzin-2 Hatay Solar PV Project, each contributing USD32.5 million in financing.
The project will develop a 100-megawatt solar power plant in Hatay Province, Türkiye, awarded in June 2022 under the government’s Renewable Energy Resource Zone (YEKA) program, which promotes large-scale renewables through competitive tenders. Sponsored by IC Enterra Renewable Energy, a subsidiary of IC Holding with over 1,500 megawatts of diversified capacity, the plant will operate under a 30-year license and deliver clean electricity at competitive costs, supported by a tariff indexed to inflation and foreign exchange.
“This project reflects AIIB’s commitment to catalyzing private capital for climate-aligned infrastructure and supporting Türkiye’s long-term energy transition goals,” said AIIB’s Chief Investment Officer, Public Sector (Region 2) and Project and Corporate Finance (Global) Clients Konstantin Limitovskiy. “Our partnership with IC Holding and TSKB demonstrates the value of collaboration in advancing renewable energy capacity and fostering sustainable economic growth.”
The project is expected to bring significant benefits to Türkiye, including the reduction of greenhouse gas emissions up to 0.6261 tonnes of CO2 equivalent for every megawatt-hour of electricity generated. Consumers will benefit from an increased supply of renewable energy, which will be more affordable than energy derived from fossil fuels. The project will also create jobs and promote economic activity in Hatay Province, where the project is located.
“This investment not only strengthens Türkiye’s clean energy capacity and reduces external dependency, but also contributes to the economic revitalization of Hatay, a region profoundly impacted by the earthquakes in 2023,” said TSKB Chief Executive Officer (CEO) Ozan Uyar. “With 92% of our loan portfolio aligned with the UN Sustainable Development Goals, we remain committed to supporting green, inclusive and resilient development across Türkiye.”
“We are pleased to sign the refinancing package for our YEKA Erzin-2 Solar Power Plant with the support of AIIB and TSKB. This 100-MW PV solar project expands our renewable portfolio beyond our nine hydroelectric plants, strengthening our commitment to Türkiye’s clean energy transition.” said IC Enterra Renewable Energy CEO Cem Aşık. “Despite the challenges of the February 2023 earthquakes, we remained steadfast in completing the project, while also contributing to recovery efforts in Hatay. The YEKA Erzin-2 Solar Power Plant now stands as both a source of renewable power and a symbol of resilience for the region.”
The project aligns with AIIB’s priorities of green infrastructure and private capital mobilization, while applying AIIB’s Environmental and Social Policy and Standards. Mitigation measures, including management plans, biodiversity and cultural heritage protection, and community engagement mechanisms, have been adopted to ensure the project’s sustainability and resilience.
About AIIB
The Asian Infrastructure Investment Bank is a multilateral development bank dedicated to financing “Infrastructure for Tomorrow,” with sustainability at its core. AIIB began operations in 2016, now has 110 approved members worldwide, is capitalized at USD100 billion and is AAA-rated by major international credit rating agencies. AIIB collaborates with partners to mobilize capital and invest in infrastructure and other productive sectors that foster sustainable economic development and enhance regional connectivity.
About TSKB
The Industrial Development Bank of Türkiye (TSKB) was founded in 1950 as the first and only private-equity development and investment bank in Türkiye. Separating itself from competition through its huge depth of knowledge and wide range of services offered to its clients for long years, TSKB has supported Türkiye’s sustainable development through corporate banking, investment banking and advisory services. TSKB makes a difference in the finance sector through its banking model offering solutions for combating climate change and supporting transition to a low-carbon economy, coupled with its sustainability-themed loans. TSKB’s total loan portfolio almost entirely consists of funds allocated to the country’s investments in such strategic fields as renewable energy, energy and resource efficiency, environment, women’s employment, and access to inclusive finance.
About IC Enterra Renewable Energy
IC Enterra currently operates a total of 488 MW of renewable energy capacity in Türkiye, consisting of 388 MW from nine hydroelectric power plants located in Trabzon, Erzincan, Tokat, Mersin, and Giresun, and 100 MW from the YEKA Erzin-2 Solar Power Plant in Hatay. Additionally, the company plans to build 546 MW portfolio of wind and solar projects with integrated battery energy storage systems in the country.
