Rönesans Holding secures $350 million in sustainable financing

Rönesans Holding successfully completed a sustainable Eurobond issuance under Turkey's first Sustainable Financing Framework. Led by IFC,

EBRD and the German Development and Finance Institution DEG, the issuance, which took place with substantial participation from international financial institutions, enabled Rönesans Holding to raise USD 350 million in financing with a 5-year tenor. Through this financing, Rönesans Holding plans to invest in green and social projects.

Rönesans Holding, which operates in five main sectors—real estate, healthcare, renewable energy, industry and construction—implemented its first Eurobond issuance under the Sustainable Financing Framework. This transaction, which represents the first issuance by a Turkish corporate group under this programme, stands out for combining green and social projects. Completed on 3 October, this 5-year sustainable Eurobond issuance attracted significant interest from a broad international investor portfolio, with demand nearly double the issue amount.

RENEWABLE ENERGY AND SOCIAL INVESTMENTS WILL BE OUR PRIORITY

Rönesans Holding Chairman of the Board İpek Ilıcak Kayaalp, highlighting Rönesans Holding's strong capabilities in international partnerships and mobilizing financing from international sources, said: "We are proud of the participation of institutions that showed interest as investors in this Eurobond issuance. We thank all international institutions that participated in our issuance, particularly IFC, EBRD and the German Development and Finance Institution DEG. We have detailed how we will use the proceeds from this issuance, which we implemented in compliance with Sustainable Financing Framework standards—a first in the sector—in which green and social projects we will invest, what approach we will follow in selecting projects, and what criteria we will adhere to when reporting on the environmental and social impacts of projects."

Stating that they plan rapid and robust growth in renewable energy investments, İpek Ilıcak Kayaalp said that over the next 5 years, they aim to reach 2,000 MW of installed capacity, consisting entirely of power plants generating renewable energy. Emphasizing that alongside renewable energy investments they will also use the proceeds from the Eurobond issuance for hospital projects that provide access to quality healthcare services, Ilıcak Kayaalp added: "We also plan to use these proceeds for social housing projects in various parts of the world, investments in clean transportation, data centers, energy efficiency projects, and infrastructure projects that enable access to clean water."

A DEMONSTRATION OF OUR COMMITMENT AND LEADERSHIP IN SUSTAINABILITY

Noting that it is a matter of pride to be the first company in Turkey to issue a sustainable Eurobond and commit to using all proceeds for financing green and social projects, İpek Ilıcak Kayaalp said that the sustainable Eurobond issuance clearly demonstrates Rönesans Holding's commitment to sustainability and its leadership in this area. İpek Ilıcak Kayaalp spoke as follows: "As an investment and construction group operating in many sectors, we are aware of our responsibilities. We are taking concrete steps to change our financing structure in order to ensure that our projects have a positive impact on society. At the foundation of everything we do lie the goals of being a social enterprise and contributing to societal development. We hope this will inspire other companies and contribute to a more sustainable and resilient economy in Turkey. While we derive 50 percent of our revenues from abroad, we will advance the approximately EUR 8 billion investment portfolio we have made in our country so far with sustainable projects. Our sustainable financing methods will serve as an important example for our sector and pioneer the prominence of environmental and social dimensions in investments made in our country."

PUBLISHED THE SUSTAINABLE FINANCING FRAMEWORK IN AUGUST

Rönesans had recently published its Sustainable Financing Framework, which is among the first in the sector with features including compliance with CMB sustainable borrowing instrument criteria. Through this framework, they stated their aim of more easily accessing sustainable financing instruments supporting green and social programmes, particularly renewable energy.

Sustainable Eurobonds have become increasingly important as debt instruments sold in international markets by countries or companies to finance renewable energy and resource efficiency investments that provide solutions to climate change, as well as projects in various fields such as healthcare and education aimed at societal benefit.