Deal analysis: Turkish limited-recourse first

Author: | Published: 16 Aug 2011

The first limited recourse financing of a gas-fired power plant in the Turkish merchant sector has closed. It has shown that it’s possible to get domestic banks comfortable with accepting construction, merchant and gas supply risk in a market undergoing liberalisation.

The 865MW gas-fired combined cycle power plant in Gebze, near Istanbul, reached financial close on July 12. Four domestic Turkish banks provided the financing, which consisted of a $700 million term loan facility and an $80 million letter of guarantee facility.

The plant was constructed under a engineering, procurement and construction (EPC) contract was signed under English law. The regulatory framework was structured under Turkish law.

Regulatory approvals were required from Turkey’s Energy...



close Register today to read IFLR's global coverage

Get unlimited access to for 7 days*, including the latest regulatory developments in the global financial sector, updated daily.

  • Deal Analysis
  • Expert Opinion
  • Best Practice


*all IFLR's global coverage published in the last 3 months.

Read IFLR's global coverage whenever and wherever you want for 7 days with IFLR mobile app for iPad and iPhone

"The format of the Review has changed over the years; the high quality of its substantive content has not."
Lee C Buchheit, Cleary Gottlieb