Kuwait Finance House (KFH) – Bahrain has executed an $85 million Commodity Murabaha financing facility for the Turkish company Çayırhan Enerji – Türkiye. This financial arrangement provides capital to support the firm’s power plant acquisition in Türkiye. The transaction involves the participation of Kuveyt Türk, which collaborated with the Manama-based bank to finalize the funding structure. Çayırhan Enerji – Türkiye, an entity associated with the Akçadağ Group, will utilize these funds to complete the purchase of the power generation facility. Officials from the involved institutions confirmed the completion of the financing agreement, which marks a significant investment in the Turkish energy sector. This deal represents the latest expansion of Islamic financing services provided by Kuwait Finance House (KFH) – Bahrain within the regional market.
Strategic Role of KFH
KFH Group utilized its established presence in Türkiye through the participation of Kuveyt Türk to facilitate this cross-border transaction. By integrating the local market knowledge of the Istanbul-based subsidiary with the structured finance capabilities of the Manama-based institution, the group successfully channeled capital into the project.
This financing facility supports the acquisition of the Çayırhan Power Plant, which serves as a key component of a larger privatization transaction within the Turkish energy sector. Mohamed Assem, Deputy Group CEO for Corporate Banking at KFH-Bahrain, stated: "We are pleased to support this acquisition, which represents one of the prominent privatization transactions in Türkiye’s energy sector. The financing of such strategic power generation asset reflects our commitment to enabling investments that promote economic growth, strengthen energy security, and create long-term value. This transaction further demonstrates KFH-Bahrain’s capability to structure tailored Shari’a-compliant financing solutions across key regional markets, leveraging the strength of KFH Group’s extensive network and expertise."
The Çayırhan Power Plant acts as a flagship investment within the broader portfolio of the Akçadağ Group. Operational requirements at the facility currently provide employment for over 2,500 people. Muhammed Taha Akçadağ, Chairman of the Board of Directors at Çayırhan Enerji – Türkiye, noted: "The acquisition of the Çayırhan Power Plant represents a transformative milestone for our group and a significant step in advancing our long-term strategic vision within Türkiye’s energy sector. Creating employment for over 2,500 people, this acquisition plays a vital role in ensuring the company’s financial sustainability, laying a strong foundation for future investments, and supporting energy supply security in the region where it operates. We highly value the support provided by KFH-Bahrain and appreciate the professionalism, commitment, and collaborative approach demonstrated throughout the financing process. Their partnership played an important role in the successful completion of this strategic transaction."