ISTANBUL- Aydem Yenilenebilir Enerji, one of Turkey's largest renewable energy producers, said on Tuesday it applied to the country's capital markets watchdog for an initial public offering (IPO), taking advantage of a rally in Turkish markets.

Aydem, formerly called Bereket Enerji, runs 25 renewable power plants with an installed capacity of 1,020 megawatts, around 1% of Turkey's energy generation capacity. Some of the plants are eligible for state feed-in tariff support.

In a statement, the company said it mandated Garanti Yatirim, Is Yatirim, Turkiye Kalkinma ve Yatirim Bankasi and Yapi Kredi Yatirim for the Istanbul listing.

A source familiar with the IPO plan said the company tapped Wall Street banks Citigroup Inc, Goldman Sachs Group Inc and JPMorgan Chase & Co as international book runners.

A separate source close to the company said it applied for a listing on the Borsa Istanbul last year but had suspended those plans because investor appetite for IPOs had dipped in emerging markets.

The lira tumbled 20% against the dollar last year but has rebounded strongly since November, drawing in more than $20 billion in foreign inflows that boosted Turkish assets.

Aydem Yenilenebilir is part of Aydem Enerji group, which also runs electricity grids and thermal power plants. It was renamed from Bereket after its multi billion-dollar debt restructuring in 2019.

(Reporting by Can Sezer; Editing by Jonathan Spicer) ((can.sezer@tr.com; +90-212-350 7055; Reuters Messaging: can.sezer.thomsonreuters.com@reuters.net))