The European Bank for Reconstruction and Development (EBRD) will provide $80m in loan to Yapi Kredi bank to boost the energy efficiency and renewable energy investments in Turkey.

This funding is being made under EBRD’s Turkish Sustainable Energy Financing Facility – a dedicated finance facility aimed at supporting long-term energy strategy in the country.

The loan will be used to promote energy efficiency and renewable energy investments among Turkey’s small and medium-sized enterprises (SMEs).

Commenting on the transaction, EBRD Turkey and the Southern and Eastern Mediterranean Financial Institutions director Francis Malige said the bank is committed to provide financing for businesses that want to invest in new technologies in order to save energy.

Yapi Kredi CEO Faik Acikalin said, "At Yapi Kredi, we believe that SMEs are the engine of economic growth.

"The current loan from EBRD is geared towards financing energy efficiency and renewable energy projects of Turkish SMEs, and the Turkish economy will also take advantage of it in the long run," added Acikalin.

Currently, EBRD has invested around €1.2bn in Turkey’s sustainable energy sector.