- Aydem has raised $750m from its green bond issue.
- The funds will enable the company to double its portfolio over the next 4 years.
- Aydem plans to augment its current hydro and wind production with solar power.
Turkish power firm Aydem Renewables plans to use the funds from its $750 million green bonds issuance to pay off bank loans and build clean energy plants to double its capacity to over 2GW. In addition, the company plans to upgrade its hydro and wind units to hybrid power plants via the addition of solar arrays. Aydem believes that adding solar power to hydro plants will limit the impact of droughts on its hydropower output.
The company will use part of the proceeds from the Eurobond issue to develop the first phase of its 600MW hybrid investment plan. A combined 236MW of solar capacity will be added to three hydropower units and a wind farm. Aydem will expand the 99MW Akıncı hydropower plant in Tokat with a 74.4MW PV plant for €22.3 million. In addition, €17 million will fund a 56.4MW solar PV plant to the 63MW Koyulhisar hydropower plant in Sivas in central Turkey. At the same time, the third project, the 49.6MW Mentaş hydroelectric plant in Adana, will be expanded with a €14.8 million 55.6MW solar plant. The company will add another 55.6MW solar plant to the 61.5MW Uşak wind farm in the eponymous province. Aydem plans to complete the construction of the four solar plants within the next three years. This will also enable the company to double its portfolio by 2025.
The bond issue was oversubscribed by 2.1 times and mature in 5.5 years, of which the first 3.5 years is the grace period., The green bonds have an interest rate of 7.75 per cent. According to Aydem Renewables, the bond issuance was the largest green bond issued in Turkey, Central and Eastern Europe, the Middle East, and Africa.