EBRD issues loan to Turkish energy company for acquisition of competitor
Baku, Azerbaijan, Feb.16
By Nigar Guliyeva - Trend:
The European Bank for Reconstruction and Development (EBRD) has issued a loan of up to €27 million (160 million lira) to Zulfikarlar Holding A.S. subsidiary, Turkuaz Petrol Ürünleri A.Ş for the acquisition of Turkiye Petrolleri Petrol Dagitim A. Ş. (TPPD), the state-owned fuel distributor.
The EBRD loan is part of a larger $ 222 million financing package which includes an acquisition loan of €73 million (414 million lira) from the EBRD, Is Bank and TSKB as parallel lenders, and $ 131 million of working capital facilities from Is Bank and TSKB. The transaction is the last major milestone in the privatisation of the Turkish fuel retail sector.
EBRD Managing Director for Turkey Arvid Tuerkne said that the successful privatisation will send a signal to the market about Turkey’s continuing commitment to private sector development and support.
"Combining the strength of the two fuel distributors should eventually benefit customers thanks to increased competition," he said.
TPPD , founded in 2006, has a network of 388 petrol stations focused on the Ankara region. It is the sixth largest market player among 84 licensed fuel distributors in Turkey with a 4.3 per cent market share in 2016. In addition, it operates seven fuel terminals and two LPG storage facilities. The product portfolio includes diesel, gasoline products, fuel oil, LPG and lubricants.
Turkuaz is a private Turkish company founded in 1994 and today operates 325 petrol stations, with almost half located in the Marmara (north-west) and Middle Anatolia regions. In 2016 Turkuaz won a competitive process for the privatisation of TPPD against three competitors. The acquisition will allow the company to compete more effectively with larger market players thanks to its increased size.
The EBRD is a major investor in Turkey. Since 2009, it has invested €10 billion in various sectors of the Turkish economy, with almost all investments in the private sector. In 2017 alone, the EBRD invested €1.6 billion in 51 projects in the country.