BBVA and Cesce finance TOSYALI’s largest solar project with €187 million
BBVA has provided €187 million in financing to the steel group TOSYALI to support the first phase of its solar energy plan in Türkiye. The project, to be delivered by GE Vernova and Inogen, will help advance the decarbonisation of one of the world's leading producers of green steel. Structured as an Export Finance Buyer Credit facility backed by Cesce, the transaction underscores BBVA's ability to support large-scale industrial projects that accelerate the transition to a low-carbon economy.
BBVA has signed a €187 million financing agreement, backed by Cesce, with TOSYALI to support the development of the Osmaniye and Niğde solar projects, the first two facilities under a photovoltaic investment programme. The financing will enable the construction of both plants, which will add 261 MW of installed capacity, while supporting the company’s ongoing energy transition.
The investment will underpin the first phase of a programme through which the Turkish steel producer aims to reach 1.4 GW of renewable self-generation capacity. With an annual crude steel production capacity of 15 million tonnes, TOSYALI has established itself as one of the world's leading steel producers incorporating sustainability criteria into its production, placing sustainability at the core of its growth strategy. This development builds on the 235 MW of rooftop solar capacity already installed at its industrial facilities and will contribute to the development of one of the world's largest industrial self-consumption renewable energy projects.
For BBVA, the transaction reflects its commitment to financing investments that foster the sustainable transformation of industry. Backed by Cesce, the financing structure combines support for Spanish exports with the development of large-scale renewable energy infrastructure, demonstrating the bank's ability to deliver tailored financial solutions that meet clients' needs in strategic energy transition projects. The project also involves GE Vernova Spain as equipment supplier and Inogen as EPC contractor.
"This transaction reflects BBVA’s ability to structure financing solutions that support our clients in their transition towards a more sustainable and competitive production model. Export credit agency (ECA)-backed financing is a key instrument for mobilising the capital required for large-scale investments such as this. The deal reaffirms our strong commitment to Türkiye, a strategic market for BBVA, by supporting our Turkish clients throughout their growth journey," said Onur Genç, BBVA's Chief Executive Officer.
"The deal reaffirms our strong commitment to Türkiye, a strategic market for BBVA"
Fuat Tosyalı, Chairman of TOSYALI Holding, said: “Energy transformation has become one of the most important factors determining competitiveness in industry today. As TOSYALI, we place sustainability at the center of our business and are transforming all of our processes, from production to energy, with a long- term perspective. Our solar power plant investments, which we are implementing with this vision and which will reach a total capacity of 1.4 GW, is not only investments aimed at meeting our own energy needs from renewable sources, but also a strategic transformation initiative that strengthens our energy independence and reinforces our global ambition in green steel production”.
Through this transaction, BBVA reaffirms its commitment to supporting clients in their energy transition by providing structured financing solutions that enable high-impact investments, enhance business competitiveness and contribute to the transition towards a low-carbon economy.