LBBW, KfW to extend loan for 120-MW Turkish wind project

Jul 13, 2012 - German wholesale lender Landesbank Baden Wurttemberg (LBBW) and state-run banking group KfW's unit KfW Ipex-Bank will provide a USD-164.5-million (EUR 134.8m) syndicated loan for a 120-MW wind power project in Turkey.

The loan supports the German export industry, LBBW said in a statement yesterday, as the 50 turbines for the Karaburun wind farm will be made by German Enercon.

Turkish group Alto Holding is the developer of the USD-227-million Karaburun wind farm, located near western Turkey's city of Izmir. Enercon will supply and erect the wind turbines and service them for 14 years. The wind farm is seen to produce enough power to supply 100,000 homes a year, starting from 2013, LBBW said, adding that the power produced from renewables in Turkey is purchased at a price guaranteed by the government for 10 years.

The loan is covered by an export credit guarantee of Germany. This is the first Hermes-covered financing for a wind farm in Turkey, LBBW noted.

(USD 1 = EUR 0.819)

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