Kalyon Group’s USD 1.1 Billion Project Financing

Kalyon Group's USD 1.1 Billion Project Financing

Clifford Chance has advised the financing consortium involved on this deal.

The transaction involved the design, construction, operation and maintenance of a photovoltaic power plant in the Karapinar region of Turkey, near Konya. Total investment cost for the project is over USD 1.1 billion. The sponsor of the project is Kalyon Group, a major Turkish conglomerate. In addition the financing of part of the equipment to be used for the project is backed by a guarantee from the UK Government, acting through UK Export Finance (UKEF).

Once complete, the power plant will have an installed capacity of more than 1300 MWp / 1000 MWe and will comprise of around 3.5 million ground mounted photovoltaic solar modules, which will be manufactured at a fully integrated factory in Ankara, which is also owned by Kalyon Group. Furthermore, the carbon dioxide savings of the fully operational solar power plant will be around 2 million tons per year.

The financing consortium comprises J.P. Morgan AG as UKEF facility agent, JPMorgan Chase Bank, N.A., London Branch as UKEF lender and UKEF mandated lead arranger, Türkiye Garanti Bankasi A.S. as intercreditor agent, Türkiye Is Bankasi A.S., Baskent Corporate / Ankara Branch as security agent, Türkiye Garanti Bankasi A.S. as commercial facility agent and Denizbank A.S., Türkiye Kalkinma ve Yatirim Bankasi, Türkiye Garanti Bankasi A.S., Türkiye Is Bankasi A.S., Baskent Corporate / Ankara Branch, Türkiye Vakiflar Bankasi T.A.O. Atasehir Corporate Branch and Türkiye Sinai Kalkinma Bankasi A.S. as commercial lenders and commercial mandated lead arrangers.

The Clifford Chance team on the transaction was led on the international and English law side by partners Riko Vanezis (Picture), Nikolai Eatwell and Jared Grubb with counsel Sergei Kabanov, with primary support from senior associates Jason London and Fahimeh Moradi, associate Sindana Ulaganathan as well as trainee lawyers Ayca Roche, Sanjay Shelat and Omotomiwa Adeyefa (all Finance). Partner Sandy Hall and senior associate Simon Smith (both Real Estate) provided support on construction and O&M project arrangements. Counsel David Neu and senior associate Radoslav Lolov (both Finance) provided support on the hedging part of the transaction.

Involved fees earner: Nikolaï Eatwell – Clifford Chance; Jared Grubb – Clifford Chance; Sandy Hall – Clifford Chance; Sergei Kabanov – Clifford Chance; Radoslav Lolov – Clifford Chance; Jason London – Clifford Chance; Fahimeh Moradi – Clifford Chance; David Neu – Clifford Chance; Simon Smith – Clifford Chance; Riko Vanezis – Clifford Chance;

Law Firms: Clifford Chance;

Clients: DenizBank; Garanti BBVA ; JP Morgan; JP Morgan Chase & Co.;

Giulia Di Palma

Author: Giulia Di Palma