UK, Poland guarantee $272M loan for Turkey's second-largest solar project

LONDON — The UK and Polish governments have guaranteed a €249 million ($272 million) green loan arranged by Standard Chartered Bank for the renewable energy investment company Kalyon Enerji, enabling the construction of Turkey’s second-largest solar project.

According to a statement released Thursday by UK Export Finance, the government's export credit agency (ECA) responsible for supporting deals that promote British exports, the agreement is jointly guaranteed with KUKE, the Polish ECA, and will support jobs in Poland and the United Kingdom in the renewable energy sector supply chain.  

When an ECA guarantees financing on a deal, the agreement ensures that funding will remain available even if the contracted bank is unable to subsequently fulfill the loan, thus providing certainty that exporters from the countries concerned are able to fulfill their contracts and get paid for their services. 

Kalyon Enerji's new project comprises construction and operation of solar power plants at seven separate locations with an aggregate power-generating capacity of 390 MWp (Megawatt peak) across the provinces of Bor-Nigde, Gaziantep and Sanliurfa-Viransehir. Once completed, it could generate enough renewable electricity to power more than 65,000 households annually, UKEF said in its statement.