Aydem Renewables (Aydem Yenilenebilir Enerji A.S.), an independent Turkish-based electricity generator with currently 1GW installed capacity, proposes to issue up to $750 million 5.5-year bond to refinance all of its existing debt. Aydem Renewable benefits from a favorable fixed USD-linked renewable energy support mechanism (YEKDEM) tariff covering 89% of its revenues in 2020; low-cost hydro operations (84% of installed capacities); low maintenance costs as the fleet is relatively new; and projected improvement in credit metrics on the back of increased power production. These strengths are mitigated by the small scale of the company; observed strong volatility of hydro levels affecting output; high country risks; and projected negative free operating cash flow in 2021-2022 because of sizable growth capital expenditures (capex).
