SUNFARMING EURASIA ASSET ENERJI YAT
Status: Approved investmentWhy disclosure?
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Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
FMO’s proposed investment is a USD senior loan of up to US15.5 million to a portfolio of 12.2MWp of so-called ‘unlicensed’ (~1MW) PV solar projects in Turkey (the “Project”) developed by German Sponsors SUNfarming GmbH (“Sunfarming”) and Alensys AG (“Alensys”). Since 2004 the Sunfarming Group has acted as a successful EPC and O&M contractor, developer and investor in PV systems for in total more than 450 MWp of realized projects (of which 95 MWp fully owned) in Germany and the UK. The company is among the ten largest German solar PV companies today.
What is our funding objective?
This proposed investment will be used to financing the construct and operate a capacity of 12.2MW of PV solar projects in Turkey. The Project will sell its energy output under a 10-year Feed-in-Tariff (“FiT”) of 13.3 US¢/kWh under the YEKDEM renewable energy regime and thereafter into the market or bilaterally under offtake arrangements with industrial parties.
Why do we fund this investment?
The proposed Project fits FMO’s mandate and strategy as: (i) it is 100% green; (ii) led by a German sponsor with an 15-year track record as EPC, O&M and project developer in Germany and UK; (iii) developmental value as Sunfarming is planning to roll out for one of the Adana projects its Intersolar 2017 Award-wining Energy & Food training programme; and iv) the project fits well with FMO’s focus on decentral renewable energy.
What is the Environmental and Social categorization rationale?
The Project has been categorized as “B” due to its low E&S impact focusing mainly on PS1 to PS4 with focus on the waste produced. PS5 to 8 are not triggered as per the following rationale: PS5 - the project acquired marginal land with no formal acknowledged agricultural use on a willing buyer willing seller. PS6 - the areas are not considered to be of important biodiversity value (marginal lands) PS7 - there are no indigenous groups in the area and; PS8 - there are no areas of cultural significance impacted or in the vicinity of the project areas.
- Region
- Europe & Central Asia
- Country
- Türkiye
- Sector
- Energy
- Effective date
- 4/20/2018
- Total FMO financing
- USD 15.50 MLN
- Funding
- FMO NV
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Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - B