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

ISTANBUL, Oct. 31, 2024 /PRNewswire/ -- 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, Ipek Ilicak 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, Ipek Ilicak 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.

COMMITMENT AND LEADERSHIP IN SUSTAINABILITY

Ipek Ilicak Kayaalp emphasized that this sustainable Eurobond issuance clearly demonstrates Rönesans Holding's commitment to sustainability and its leadership in this area. She stated, "We are proud to be the first company in Türkiye to issue a sustainable Eurobond in our sector, committing to use all proceeds from the issuance to finance green and social projects. While we generate 50% of our revenues abroad, we are increasing the approximately EUR10 billion investments we have made in our country to date with sustainable projects. Our sustainable financing methods will serve as an important example for our sector, leading the way for the environmental and social dimensions of investments in our country to gain prominence."

GREEN FINANCE FRAMEWORK

In mid-2024, Rönesans Holding became one of the first in its sector to publish its Green Finance Framework, which also complies with Capital Markets Board of Türkiye (SPK)'s criteria for green debt instruments. With this framework, the company formalised its aims to increase accessibility to green finance instruments and extend support for green and social programs, particularly in renewable energy.

About Rönesans Group

Rönesans Holding, the conglomerate's leading investment entity headquartered in Ankara, is the 53rd largest international contracting company globally and one of the largest in Europe. With operations spanning 30 countries across Europe, Central Asia, and Africa, including subsidiaries such as Ballast Nedam in the Netherlands and Heitkamp Industrial Solutions GmbH in Germany, Rönesans has been operating as the main contractor and investor successfully for 30 years in construction, energy, healthcare, real estate development and industrial investments. Putting resilience and growth through innovation at the core of the company, with a priority on sustainability and social development, Rönesans has developed projects supporting students with scholarships, academic platforms and initiatives; been a signatory of the UN Global Compact since 2015; and a signatory of the UN Women's Empowerment Principles since 2016.

Under the leadership of its president, Erman Ilicak, Rönesans, along with its partners GIC, Meridiam Infrastructure, Sojitz, Samsung C&T, TotalEnergies, and IFC of the World Bank Group (minority shareholder in the group), has invested more than EUR8 billion into pioneering projects globally.

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CONTACT: Ceren Yüksel, +905382540053, ceren.yuksel@ronesans.com