The loan is being provided under the EBRD’s extended Turkish Sustainable Energy Finance Facility (TurSEFF), a dedicated finance facility aimed at supporting the country’s long-term energy strategy.
Commenting on the initiative, EBRD first vice president Phil Bennett said that the new funding will increase the role of Turkish banks in financing and promoting energy efficiency, while protecting the small and medium-sized enterprises (SMEs) from the impact of rising energy costs and high energy intensity in the country.
"This will save them money and make them more competitive in the long run," added Bennett.
The investment is backed by an EU grant that enables the EBRD to engage consultants to help banks and businesses with technical advice for energy-saving investments.
Energy efficiency in SMEs will enable the country’s energy-intense economy to meet the target of reducing greenhouse emissions and of increasing the share of the renewables in its energy mix. It will also lower the country’s dependence on fossil fuels and enhance energy security.
In addition, the financing will help the enterprises to bring their environmental standards closer to EBRD and EU best practices.
VakifBank, a full-service commercial and retail bank, is the seventh commercial bank and the third largest state-controlled bank in Turkey. It has been investing in energy efficiency under TurSEFF since May 2010.
