Background Information

German wheels in the Turkish wind

Januar 2012

Bayern LB grants a credit for the supply of 20 wind turbines to Turkey. In order to hedge against the risk of a default during the credit period of 10 years, the bank has applied for buyer credit cover under an export credit guarantee of the Federal Republic of Germany.

Nordex SE will supply the wind generators with a capacity of 2.5 each to Turkey beginning in January 2013 and set them up on an area of 70,000 m² near Izmir. As early as September 2013 the wind farm “Zeytineli” is to be ready for operation and to feed electricity into the grid. For this the necessary transmission lines and a substation will be built. The German company is market leader in Turkey and represented locally by its subsidiary Nordex Enerji A.S. Turkey attaches great importance to the generation of power from renewable sources.

Hermes Cover for buyer credits helps to fund German export business. If a bank extends a credit to the foreign customer of the German exporter, Hermes Cover will protect the bank against bad debt losses. The export loan of BayernLB for the Turkish wind farm amounts to EUR 39.125 million.

As a rule a Federal export credit guarantee covers 85 % of the contract value of a capital goods transaction. The loan is usually repaid in half-yearly instalments after completion. According to the guidelines of the OECD Consensus renewable energy projects with credit periods of up to 18 years can be covered.

The new wind farm will save roughly 100,000 tons of carbon dioxide annually, which would result if the power were generated using the energy mix so far customary in Turkey.