The European Bank for Reconstruction and Development (EBRD) is extending its first credit line under its Sustainable Resource Initiative (SRI) with a €50 million loan to Turkiye Sınai Kalkınma Bankası A.S. (TSKB), the first privately-owned development and investment bank incorporated in Turkey.
TSKB will on-lend the funds to private sector companies for the financing of resource efficiency investments, including water efficiency, waste minimisation and energy efficiency projects.
The EBRD’s first credit line dedicated to resource efficiency ever builds on the Bank’s extensive experience in financing energy efficiency improvements through partnerships with financial institutions. In many countries where it operates, and in Turkey specifically, the EBRD is at the forefront of efforts towards energy and resource efficiency.
Sylvia Gansser-Potts, EBRD Director for Financial Institutions, Southern and Eastern Mediterranean and Turkey, said at the signing: “We are delighted to support TSKB’s efforts to promote resource efficiency financing through its tailored lending products. By providing financing to companies for resource efficiency projects, the EBRD contributes to their sustainable development and to the improvement of the overall competitiveness of the Turkish economy.”
Mike Davey, EBRD Director, Turkey, added: “We are pleased to expand our cooperation with TSKB in such an important area. We are particularly happy that TSKB serves as a pioneer in the banking sector with steps towards introducing resource efficiency finance as a standard lending product.”
Turkish businesses are facing growing resource efficiency challenges regarding the use of water and energy as well as the management of waste. Turkey’s growing population, expanding economy and continuing urbanisation, together with the impacts of climate change, are placing pressure on the country’s water and energy resources. At the same time, the expansion in industrial production and consumer demand is resulting in increasing levels of pollution and waste generation.
“Resource efficiency investments have become more important in an environment where we are witnessing an appetite for low-carbon growth and sustainable development. The credit line extended by EBRD to TSKB is a strong indicator of EBRD’s trust in the knowledge and experience of our Bank in the field of financing sustainable investments” said Orhan Beşkök, TSKB’s Senior Executive Vice President.
“This EBRD loan will support TSKB in scaling up dedicated financing for Turkish businesses by scaling-up resource efficiency technologies and practices within the Turkish market and spreading them across the industrial sector helping companies to save their precious resources, using them in a more effective way and cutting their expenses. This will make them more competitive in the long run,” said Terry McCallion, EBRD Director for Energy Efficiency and Climate Change.
The EBRD’s Sustainable Resource Initiative was launched in May 2013 to promote efficiency and innovation and to enhance competitiveness across the countries where it invests. Sustainable energy and resource efficiency are also key EBRD priorities in Turkey.
To date, the Bank has invested more than €1.7 billion in Turkey’s sustainable energy. Since the beginning of its operations in Turkey in 2009, the EBRD has invested over €4 billion in the country in 126 projects, both in direct deals and through credit lines.