Rönesans Enerji Publishes Green Finance Framework

The Framework is a first of its kind for Rönesans Holding, designed to direct financial investments towards projects that promote environmental sustainability. ING acted as a sustainability advisor in the preparation and publication of the Green Finance Framework.

ISTANBUL, Sept. 18, 2024 /PRNewswire/ -- To realise the goal of becoming one of Türkiye's top 3 green energy companies, Rönesans Enerji has rapidly accelerated its investments alongside publishing its Green Finance Framework, a pioneering initiative in the sector that complies with the Capital Markets Board of Türkiye's criteria for green debt instruments.

Rönesans Enerji, a joint venture between Rönesans Holding and TotalEnergies, has boosted its investments by leveraging the Green Finance Framework to gain easier access to green financing instruments that support renewable energy. The company aims to achieve approximately 7 to 10 percent of the green energy investments targeted in Türkiye's National Energy Plan.

The creation and publication of Rönesans Enerji's Green Finance Framework, which is also the first of its kind for Rönesans Holding companies, received support from ING, which acted as a sustainability advisor. The framework is aligned with the Green Bond Principles of the International Capital Market Association (ICMA), the Green Loan Principles of the Loan Market Association (LMA), the Loan Syndications and Trading Association (LSTA), the Asia Pacific Loan Market Association (APLMA); as well as the Capital Markets Board of Türkiye's (CMB) guidelines for Green Debt Instruments, Sustainable Debt Instruments, Green Lease Certificates, and Sustainable Lease Certificates. This compliance ensures its applicability in both national and international green financing instruments. The Rönesans Enerji Green Finance Framework is among the first frameworks to incorporate the CMB's guidelines for Green Debt Instruments, Sustainable Debt Instruments, Green Lease Certificates, and Sustainable Lease Certificates, thereby contributing to the recognition of the CMB Guidelines.

With its numerous compliance criteria, the Green Finance Framework stands as one of the most comprehensive frameworks in Türkiye's energy production sector. In addition to covering general renewable energy sources such as hydroelectric, wind, and solar power, the framework also includes other renewable sources like bioenergy and geothermal, as well as energy storage systems within its scope. Green hydrogen production and hydrogen storage technologies have been included in the scope of the Green Finance Framework as a strategic preparation for the future. This makes the Green Finance Framework one of the first frameworks in Türkiye to cover hydrogen technologies. All technologies and criteria of the Green Finance Framework were evaluated by ISS Corporate Solutions, which provided a Second Party Opinion (SPO). The Green Finance Framework received a positive assessment, confirming its compliance with relevant standards.

EASIER ACCESS TO GREEN FINANCE

The Board of Directors of Rönesans Holding, İpek Ilıcak Kayaalp stated that Rönesans Enerji has achieved a pioneering milestone in Türkiye's energy sector with its Green Finance Framework. She highlighted that this framework is one of the first Green Finance Framework among the sector, adding: "We are committed to building a better, more sustainable future. We continue our journey with determination, aiming to set an example in every sector in which we operate."

She also noted that one of Rönesans Holding's greatest strengths is its ability to create foreign partnerships and secure foreign financing: "We are actively working with 40 different international banks worldwide to finance our investments under favourable conditions. To date, we have invested over EUR 8 billion in Türkiye, with more than 90% of this investment realised in collaboration with these banks. The first item foreign creditors review is the ESG report, where Rönesans Enerji secured this report last year. With the Green Finance Framework we have published, we will gain easier access to green finance instruments that support renewable energy, furthering our contribution to Türkiye's sustainable future."

GOAL TO BECOME ONE OF TÜRKİYE'S TOP 3 GREEN ENERGY COMPANIES

Rönesans Holding Board Member and Energy Group President Emre Hatem stated that with the published Green Finance Framework, Rönesans Enerji is confidently moving towards realising its goal of becoming one of Türkiye's top three green energy companies. Emre Hatem said: "Since its establishment, Rönesans Enerji has only invested in green energy and will continue to grow with a 100% green energy portfolio in the future. At Rönesans Enerji, we plan to invest in bringing 2000MW of green energy capacity online by 2028. By bringing our current projects under construction and development online, we aim to reach an installed capacity of over 700 MW by the end of 2026 in the first phase. Over the next five years, we aim to achieve approximately 7% to 10% of the green energy investments targeted in Türkiye's National Energy Plan."

WE POSITION SUSTAINABILITY AMONG OUR STRATEGIC PRIORITIES.

Bas Bittink, Head of Türkiye and Middle East Debt Capital Markets at ING said, 'As we seek to help our clients build a sustainable future, the ING team was honored partnering up with Rönesans Enerji. The established Green Finance Framework and Second Party Opinion have set a new regional best practice and will support attracting further dedicated financing towards the Turkish renewable energy sector.'

ING Türkiye Wholesale Banking Executive Vice President Ayşegül Akay said, 'As ING, we position sustainability among our key strategic priorities and have been active in this field for more than 30 years. ING announced end of last year it aims to triple the financing for renewable energy to EUR 7.5 billion annually by 2025. We believe that green transformation requires a collective effort and action, and we aim to contribute to Türkiye's green transformation journey by leveraging our international expertise in sustainable finance and our strong global network. In this context, we believe that Rönesans Enerji's Green Financing Framework, for which ING acted as a sustainability advisor during its preparation and publication, can create an important step towards the transformation of the energy sector in Türkiye and bringing the required financing for this transformation. We are pleased to take part in this valuable cooperation that will contribute to the renewable energy investments of Rönesans Enerji, a partnership of Rönesans Holding and TotalEnergies, and thus to Türkiye's sustainability roadmap.'

The Green Finance Framework is a comprehensive set of guidelines designed to direct financial investments towards projects that promote environmental sustainability. This framework defines the necessary criteria and standards for investments to be considered as 'green'. It aligns with recognised frameworks such as the Green Bond Principles and the EU Taxonomy for Sustainable Finance. This framework focuses on specific environmental goals, such as reducing greenhouse gas emissions, increasing resource efficiency, and advancing sustainable development. Furthermore, it ensures transparency and accountability through rigorous reporting and disclosure requirements, guaranteeing that investments meet green criteria and provide measurable environmental benefits.

About Rönesans Group

Rönesans Holding, the conglomerate's top investment entity headquartered in Ankara, is the 53th largest international contracting company globally. 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 Ilıcak, 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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