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ESG

Landmark solar power deal lights the way for sustainable investments

Solar power plants are creating jobs and sustainable energy around the world. Europe’s largest plant is underway, with J.P. Morgan central to the deal’s financing.


Turkey’s ambitious renewable energy plans have taken another major leap forward with the conclusion of approximately $811 million financing for the Karapinar solar power plant. Once completed, this will become the largest power plant in Turkey - and all of Europe. 

J.P. Morgan was central in arranging and lending a $291 million UK Export Finance guaranteed facility, which will finance supplies of solar technology by GE Renewable Energy to the solar power plant project company owned by Kalyon.

This guaranteed facility will be the largest ever guarantee provided by the UK government for a solar project and, when the solar power plant is complete, it will power two million Turkish households with green energy. It also marks GE Renewable Energy’s first solar invertor technology deployment outside the U.S.

The resultant facility, equivalent to over 4,600 soccer pitches in size, will support 100 UK jobs. In acknowledgement of the importance of this renewable energy project to the country and wider industry, the financing was awarded “European ESG Deal of the Year Award” from Project Finance International (PFI).

J.P. Morgan’s Global Head of Export and Agency Finance, John Meakin:

“It is gratifying to see that our financing is helping to contribute to the creation of UK jobs, as well as Turkish households being ultimately supplied with green energy. This project is a clear step forward on our 10-year commitment to facilitate more than $2.5 trillion to address climate change and contribute to sustainable development, including $1 trillion for green initiatives.”

Sustainability has no borders. Initiatives like this one, which are truly global, will lead the way for the green energy projects of the future.
 

John Meakin, Global Head of Export and Agency Finance, J.P. Morgan

About the team

For the last two years, the J.P. Morgan Export & Agency Finance team has been the key link between our client Kalyon, GE, UK Export Finance, commercial banks and hedging banks in structuring, negotiating and closing the financing for the first project to be developed through the new renewable energy support regime in Turkey, YEKA.

In further support to the project, J.P. Morgan’s Escrow team is providing offshore account bank services which will manage critical cash flows for the term of the financing and J.P. Morgan’s Markets team is providing interest rate hedging.

 


 

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The views and opinions expressed herein are those of the author and do not necessarily reflect the views of J.P. Morgan, its affiliates, or its employees. The information set forth herein has been obtained or derived from sources believed to be reliable. Neither the author nor J.P. Morgan makes any representations or warranties as to the information’s accuracy or completeness. The information contained herein has been provided solely for informational purposes and does not constitute an offer, solicitation, advice or recommendation, to make any investment decisions or purchase any financial instruments, and may not be construed as such.

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