The European Bank for Reconstruction and Development (EBRD) has extended EUR50m loan to support energy efficiency investments in Turkey.
The loan is extended under the third phase of the Turkey Sustainable Energy Financing Facility (TurSEFF III) which provides financing of €400 million to commercial banks and leasing companies for on-lending to private sector SMEs as well as public sector beneficiaries for sustainable energy investments.
TurSEFF III is supported by a technical cooperation programme of up to €5.5 million by the European Union (EU) to promote the sustainable use of energy in Turkey and support private sector development.
Sub-loans under the credit line will contribute towards building a green economy by facilitating the expansion of resource efficiency and renewable energy lending in Turkey. Examples of possible investments include energy efficiency, water efficiency, waste minimisation and small-scale renewable energy investments.
The loan will also strengthen the financial sector in the country and contribute to the wider proliferation of leasing. Although often a viable alternative to debt financing, the market penetration of leasing in comparison to GDP is one of the lowest in comparable economies.
Unal Gokmen, General Manager of Garanti Leasing, said: “In Turkey, leasing is a very important solution for SMEs as it helps them meet long-term financing needs. TurSEFF III will be used to finance many energy saving projects for SMEs in the country. With our SME-focused strategy and broad customer base throughout the country, Garanti Leasing has always been a reliable partner of SMEs and a well-known player in international markets. This financing facility is a sign of confidence that the lenders have placed in Garanti Leasing and in the Turkish economy.
Source: Company Press Release