Turkish limited-recourse first explained

Author: | Published: 1 Sep 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...