Rönesans Holding completed Türkiye's first sustainable Eurobond issuance in its sector, with $350 million in sustainable financing
The bonds saw significant investor interest, including from the IFC, EBRD, and the German Development Finance Institution DEG (Deutsche Investitions- und Entwicklungsgesellschaft), with demand over twice the size of the issuance.Rönesans Holding has successfully completed the sustainable Eurobond issuance, enabled by its recently announced Turkiye’s first Green Finance Framework in the sector– and will use the proceeds to invest in a number of sustainability and social impact projects across the globe.
The $350 million Eurobond, issued with the participation of international financial institutions including the IFC, EBRD and German Development Finance Institution DEG (Deutsche Investitions- und Entwicklungsgesellschaft), is set to reach maturity in 2029.
Sustainable Eurobonds are debt instruments issued by countries or companies in international markets to fund projects that address climate change, such as renewable energy and resource efficiency investments, as well as social benefit projects in areas like healthcare and education.
The Eurobond issuance, completed on October 3rd, attracting significant interest from international investors, with demand exceeding twice the issuance size.
PRIORITISING RENEWABLE ENERGY AND SOCIAL INVESTMENTS
On the issuance, İpek Ilıcak Kayaalp, chair of the Rönesans Holding’s board, emphasized the company's strength in international partnerships and financing creation, stating: “We are proud of the participation of multinational financial institutions, particularly the IFC, EBRD, and DEG, who supported this Eurobond issuance as investors. We extend our thanks to all international organizations involved in our issuance.”“In our Sustainable Finance Framework, which is the first in the sector, we have provided detailed explanations of the types of green and social projects where the funds from the sustainable Eurobond will be used, the selection criteria for these projects, and the environmental and social reporting criteria we will follow.”
Emphasising that Rönesans Holding is planning to achieve rapid growth in its renewable energy business, aiming to reach an installed capacity of 2,000 MW entirely from renewable energy plants over the next five years, İpek Ilıcak Kayaalp said “We are also planning to invest in areas like healthcare and public infrastructure, and will use some of the funds from the Eurobond issuance to finance hospital projects which enable better access to quality healthcare services. Funds are planned to be invested in social housing projects the company is developing around the world, investments in clean transportation, data centers, energy efficiency projects, and infrastructure projects that ensure access to clean water.