Turkish group Alto Holding has signed a US$164.5mn project financing with LLBW and KfW Ipex-Bank for the construction of a wind farm near Izmir, Turkey.

Alto Holding will borrow a total of US$227mn to finance the project; KfW Ipex and LLBW will lend US$164.5mn in equal shares, while an undisclosed bank will lend the remaining US$62.5mn portion.

The Federal Republic of Germany and Germany’s ECA Euler Hermes are providing export credit guarantees on the 14-year deal.

The Karaburun wind farm is expected to supply green electricity to approximately 100,000 households from 2013. Electricity generated from renewable energies will have price guarantees for 10 years under Turkey’s renewable energy incentive scheme YEKDEM.

The farm, which will have a capacity of 120 megawatts, will be powered by 50 wind turbines built by German producer Enercon of Aurich.