Türkiye’s Geothermal Pioneer: Gurmat Elektrik’s Landmark $380 Million Debut Bond Issuance
Introduction
In a milestone transaction that underscores the growing maturity of Türkiye’s renewable energy financing landscape, Gürmat Elektrik Üretim A.Ş. (Gurmat Elektrik) successfully completed its debut international bond issuance on May 21, 2026, raising $380 million through senior secured amortizing notes due in 2035. The offering, met with overwhelming investor demand exceeding $800 million—more than double the amount initially sought—represents a watershed moment not only for the company but for the Turkish energy sector as a whole.
Described as Türkiye’s first “project finance-style” Eurobond transaction in the energy sector, the transaction marks a significant evolution in how Turkish infrastructure and renewable energy companies can access international capital markets. With a nine-year tenor—the longest maturity achieved by a Turkish corporate issuer since 2021—the transaction signals growing international investor confidence in Türkiye’s renewable energy story and the country’s broader economic trajectory.
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Company Profile: Gurmat Elektrik and the GURIS Legacy
Gurmat Elektrik is a leading player in Türkiye’s geothermal energy sector, dedicated to the development and operation of geothermal power plants. The company was founded in 1999 by GÜRİŞ Construction and Engineering Co. Inc. specifically to establish and operate the Aydın-Germencik geothermal electrical energy power plant. Today, with 260 MW of installed capacity, Gurmat operates geothermal power plants that generate the largest annual electricity output in Turkey using geothermal resources.
The company operates under the umbrella of the GURIS Group, a diversified Turkish conglomerate with a history dating back to 1958. GURIS has been active in energy projects since the mid-1970s, initially focusing on thermal power plants before expanding into renewable energy. The group’s geothermal portfolio has grown steadily, with the Efeler geothermal complex alone reaching 212 MW by late 2020 and subsequently expanding to 260 MW.
Gurmat Elektrik is also a 90% subsidiary of MOGAN Enerji Yatırım Holding A.Ş., one of Türkiye’s largest renewable energy companies. MOGAN Enerji operates a diversified renewable portfolio encompassing 1,058 MW of installed capacity, split approximately 65% wind, 24% geothermal, and the remainder from hydroelectric and solar sources. Through its subsidiaries, MOGAN Enerji owns and operates nine wind power plants, seven geothermal power plants, four hydroelectric power plants, and one solar power plant, primarily located in the Aydın region.
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The Transaction: Structure and Key Details
Issuance Overview
The bond issuance, finalized on May 21, 2026, consisted of $380 million in senior secured amortizing notes with a maturity date of May 21, 2035. The notes bear a coupon of 10.748% and were priced at 100% of par value, yielding 10.75%. The notes are listed on the Euronext Dublin (Irish Stock Exchange).
The issuance was structured under Regulation S and Rule 144A formats, making them accessible to both international and U.S. qualified institutional investors. The securities carry the ISIN XS3363473193 and are identified by the German securities code A4EUW4.
Project Finance-Style Security Package
What distinguishes this transaction from conventional corporate bond issuances is its project finance-style security package. The notes are structured with:
· Day-one cash-funded debt service reserve account – providing enhanced credit protection for noteholders
· Major maintenance reserve account – ensuring funds are available for ongoing plant maintenance
· Senior secured amortizing structure – featuring scheduled principal amortization rather than a bullet repayment at maturity
This structure mirrors the rigorous creditor protections typically found in project finance transactions, offering investors a level of security more commonly associated with infrastructure debt than corporate bonds.
Use of Proceeds
The primary purpose of the issuance is to refinance existing debt for Gurmat Elektrik’s geothermal portfolio. According to disclosures made to Türkiye’s Public Disclosure Platform (KAP), the proceeds are also planned to be used for financing geothermal energy investments and other sustainability-themed projects.
This refinancing strategy aligns with broader corporate objectives articulated by MOGAN Enerji: extending debt maturities while reducing overall leverage. In the first quarter of 2026, MOGAN Enerji reduced its total debt by 2.9 billion TL year-over-year, bringing total borrowings to 30.1 billion TL. The company reported consolidated net sales revenue of 12.88 billion TL for 2024 and generated 2.26 billion TL in EBITDA-adjusted net cash from operations in Q1 2026 alone.
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Unprecedented Investor Demand
The transaction attracted **over $800 million in orders** from institutional investors, representing **more than double** the $380 million offering size. This level of oversubscription demonstrates:
1. Strong international appetite for Turkish renewable energy assets
2. Confidence in Gurmat Elektrik’s operational and financial profile
3. Recognition of the geothermal sector’s strategic importance in Türkiye’s energy transition
4. Investor comfort with the project finance-style security structure
The nine-year final maturity is particularly noteworthy, as it represents the longest-dated transaction by a Turkish corporate issuer since 2021. For context, typical Turkish corporate Eurobonds in recent years have carried shorter tenors, reflecting the challenging macroeconomic environment and investor wariness about longer-dated exposure to emerging markets.
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Advisory Team: Global and Local Expertise
The transaction was advised by a prominent team of international and Turkish legal professionals.
Issuer Counsel
White & Case LLP and its Turkish affiliate GKC Partners advised Gurmat Elektrik on the issuance. The White & Case team was led by:
· Stuart Matty – Partner, London
· Melissa Butler – Partner, London
· Güniz Gökçe – Partner, Istanbul
The team also included Counsel Derin Altan (Istanbul) and associates Hashim Eltumi, Jeffrey Cheung (London), Baran Abur, Muhammed Aşula, Deniz Alkan, and Caner Boztepe (Istanbul).
Commenting on the transaction, Stuart Matty stated:
“This landmark debut transaction in the international capital markets demonstrates the increasing attractiveness of capital markets solutions for infrastructure financings in Türkiye. Türkiye continues to be a very important and busy market for White & Case, and it plays to our Firm’s global strengths that our integrated cross-border and cross-practice team supports leading Turkish companies accessing the international capital markets, with this transaction in particular further affirming our long-standing relationship with the GURIS group.”
The GKC Partners team, operating through White & Case’s professional association with the Istanbul-based firm, included Partner Güniz Gökçe, Counsel Derin Altan, and Associates Baran Abur, Muhammed Aşula, Deniz Alkan, and Caner Boztepe.
Bookrunner
J.P. Morgan Securities plc acted as the sole bookrunner on the offering. Watson Farley & Williams and Ergun reportedly advised J.P. Morgan Securities.
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Strategic Significance for Türkiye’s Energy Sector
A New Financing Model for Infrastructure
The Gurmat Elektrik bond issuance represents a structural innovation in Turkish corporate finance. By adopting a project finance-style security package for a bond offering, the transaction bridges two previously distinct financing models:
Traditional Project Finance Traditional Corporate Bonds
Limited recourse to sponsors Full recourse to issuer
Complex security packages Simpler security structures
Typically bank debt Typically capital markets debt
Longer tenors available Shorter tenors typical
The Gurmat transaction combines the best elements of both: the creditor protections of project finance with the liquidity and scale of capital markets.
This hybrid approach could serve as a blueprint for other Turkish infrastructure and energy companies seeking to access international capital markets on more favorable terms. The success of the issuance—particularly the strong demand and extended tenor—suggests that international investors are willing to accept longer-dated exposure to Turkish renewable energy assets when appropriately structured.
Geothermal Energy: Türkiye’s Strategic Advantage
Türkiye possesses exceptional geothermal resources, with over 1,500 natural geothermal outlets and an estimated geothermal potential of 40,000 MW. As of December 2025, the country’s installed geothermal electricity capacity reached 1,758 MW.
The geothermal sector has been a priority area for Turkish energy policy, driven by:
· Energy security concerns – reducing dependence on imported fossil fuels
· Renewable energy targets – aligned with net-zero commitments
· Baseload power generation – geothermal provides reliable, continuous electricity unlike intermittent solar and wind
· Domestic content requirements – approximately 70% of geothermal investments in Türkiye utilize domestic equipment and services
However, the sector faces challenges. Recent data shows declining power prices for geothermal producers, with the market price falling from $59.11/MWh in March 2025 to $36.81/MWh in March 2026. This price pressure makes access to cost-effective, long-term financing even more critical for geothermal operators.
The Gurmat Elektrik bond issuance demonstrates that international capital markets can provide a solution to this financing challenge, offering long-dated, competitively priced capital even in a challenging price environment.
A Vote of Confidence in Türkiye
The transaction represents a significant vote of confidence in Türkiye’s economic and regulatory environment. White & Case noted that “Türkiye continues to be a very important and busy market” for international capital markets activity.
Key factors contributing to this confidence include:
· Established regulatory framework – The Capital Markets Board of Türkiye (SPK) approved the issuance on November 7, 2025
· Transparent disclosure – Detailed public disclosures through the KAP platform
· Strong corporate governance – Backing from the established GURIS Group and MOGAN Enerji
· Clear use of proceeds – Refinancing and investment in renewable energy assets
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Broader Implications for Renewable Energy Financing
Setting a Precedent
As the first project finance-style Eurobond in Türkiye’s energy sector, the Gurmat Elektrik transaction sets an important precedent. Other Turkish renewable energy companies—particularly those in geothermal, wind, and solar—may now consider similar structures to access international capital markets.
The success of this issuance could also encourage:
1. Longer-dated issuances – Demonstrating investor appetite for extended tenors
2. Repeat issuances – Gurmat Elektrik had previously received approval for a $500 million issuance ceiling
3. Sector diversification – Other infrastructure sectors may adopt similar structures
4. ESG-linked instruments – Future issuances could incorporate sustainability or green bond features
Investor Appetite for Turkish Renewables
The **$800 million+ demand** for a $380 million offering indicates significant unmet investor demand for Turkish renewable energy exposure. Key drivers include:
· Yield enhancement – The 10.748% coupon offers attractive returns in a low-yield global environment
· Energy transition themes – Geothermal aligns with ESG investment criteria
· Diversification benefits – Turkish renewable assets offer emerging market exposure with relatively low correlation to other asset classes
· Structured credit protection – The project finance-style security package mitigates emerging market risks
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Conclusion: A Landmark Achievement
Gurmat Elektrik’s $380 million debut bond issuance represents a landmark achievement for Türkiye’s renewable energy sector and the country’s broader capital markets development. The transaction successfully:
· Demonstrated international investor confidence in Turkish geothermal energy
· Established a new financing model for infrastructure projects
· Achieved record-long maturity for a Turkish corporate issuer since 2021
· Attracted overwhelming demand exceeding $800 million
· Refinanced existing debt on more favorable terms
· Strengthened the financial position of both Gurmat Elektrik and its parent MOGAN Enerji
As Stuart Matty of White & Case aptly noted, this transaction “demonstrates the increasing attractiveness of capital markets solutions for infrastructure financings in Türkiye”. With Türkiye’s geothermal potential still largely untapped and the country’s renewable energy ambitions continuing to grow, this pioneering issuance may well be remembered as the catalyst for a new era of infrastructure financing in the country.
The success of this transaction—achieved through the collaboration of global financial institutions, international and local legal expertise, and the operational excellence of Gurmat Elektrik and the GURIS Group—provides a template for future renewable energy financings not only in Türkiye but across emerging markets worldwide. As the global energy transition accelerates, innovative financing structures like this will be essential to channel the massive capital required to build a sustainable energy future.
Source : Renewables Now, White Case
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