January 10, 2008 17:00 ET

WestLB Closes USD 88.5 Million Financing for the First Private and Largest Geothermal Plant in Turkey

One of the First Foreign Banks to Finance Renewable Energy in the Country

NEW YORK, NY--(Marketwire - January 10, 2008) - WestLB's London Energy Team announced today that it closed the documentation for the first private and largest geothermal power plant near the city of Izmir in Turkey, raising a USD 88.5 million limited recourse financing for Gurmat Elektrik Uretim A.S.

WestLB acted as Sole Mandated Lead Arranger and Bookrunner. The deal was over subscribed with Vakif, Isbank, Akbank, Tekfen and TSKB committing USD 132.5 million.

Gurmat Elektrik Uretim, Turkey's ninth largest EPC contractor, is expected to be the first power plant to benefit from the recently enacted Renewable Energy Law in Turkey, which guarantees a tariff of 5.0 to 5.5 Euro cents per KWh as well as priority dispatch. "The approval of the Turkish Renewable Energy Law follows the example of the leading renewable energy countries in Europe, like Germany and Spain. This Law will help develop the power sector in the country and encourage local and international banks to support investments in the power sector," said Susana Vivares, Executive Director, WestLB's Global Energy Group.

The 47.4MW power plant will be driven by steam from a Germencik geothermal reservoir, one of the hottest in the country. The project benefits from strong sponsor support by Guris Insaat ve Muhendislik and Guris Holding, one the largest construction groups in Turkey. The sponsors are providing a completion guarantee for this milestone project in their strategy to diversify into the energy business.

The Senior Secured Commercial Facility will be used to finance the construction and start-up costs. The facility has a one-year grace period during construction followed by 10 years of straight line amortisation with an average life less than six years.

"WestLB is proud to have led this noteworthy financing in Turkey," said Tom Murray, Global Head of Energy. He added, "WestLB has been at the forefront of the renewable sector globally, with leadership positions in solar, wind, hydro and renewable fuels. We are very focused on Turkey as a growth market and will be in the syndication market soon with another large Turkish renewable deal."

About WestLB Capital Markets

WestLB develops sophisticated structured solutions through a team of highly experienced investment banking and capital markets professionals. WestLB has a long-standing presence in the corporate, structured and asset-backed financing sectors supporting clients' needs with capital commitments, advisory services and innovative financing solutions. The bank's global relationships, coupled with its unique understanding of local economies, industries and cultures, help WestLB bankers consistently deliver high quality advice and service.

About WestLB

WestLB AG is one of Germany's leading financial services providers and offers the full range of products and services of a universal bank, focusing on lending, structured finance, capital market and private equity products, private banking, asset management, transaction services and real estate finance. WestLB has total assets of EUR 280 billion, as of September 30, 2007. For more information, please visit

In the United States, certain securities, trading, brokerage and advisory services are provided by WestLB's wholly owned subsidiary WestLB Securities Inc., a registered broker-dealer and member of the NASD and SIPC.

(NOTE: 3rd Quarter Earnings Release as of September 30, 2007 distributed to public on December 6, 2007)

Contact Information

  • Contact:
    WestLB AG - Group Communications - Americas
    Ashweeta Durani
    Ph: 212-852-6310
    Email Contact

    Connie J. Kain
    Ph: 212-597-1439
    Email Contact