New funds to finance investments in the private sector
In response to growing demand for green energy the EBRD is providing a US$ 85 million loan to Türkiye Sınai Kalkınma Bankası (TSKB) to finance private mid-cap companies investing in renewable energy and resource efficiency projects in Turkey.
The financing will contribute towards a green economy by supporting solar, hydropower, wind, geothermal, waste-to-energy and energy efficiency projects as well as water-saving and waste minimisation.
Part of the EBRD’s strategy in Turkey is to support the country in addressing the challenges of a growing demand for electricity and diversifying away from imported fossil fuels. The use of renewable sources of energy will also help combat climate change.
Arvid Tuerkner, EBRD Managing Director for Turkey, said: “We are pleased to support TSKB’s efforts to promote resource efficiency and renewable energy financing through its tailored lending products. By providing financing to mid-cap companies to undertake green investments, the EBRD is contributing to their sustainable development and to the improvement of the overall competitiveness of the Turkish economy.”
Suat İnce, CEO of TSKB, said: “Sustainable investments have reached approximately 60 percent in our loan portfolio. In this context, we are very pleased to provide additional support to Turkey’s transition to a low carbon economy through our cooperation with EBRD. This new financing facility focusing on renewable energy and resource efficiency, which are the top priority investment areas of our country, also reaffirms the confidence in the general Turkish economy.”
The loan comes under the EBRD’s €1.6 billion Mid-size Sustainable Energy Financing Facility (MidSEFF) for Turkey. To date, nearly 60 projects have been financed under this framework through seven Turkish banks, installing over 1 GW of renewable energy capacity by private commercial and industrial companies.
The current phase of MidSEFF is supported by the European Union which has provided €2.2 million in grant funding, enabling the EBRD to deliver expert advice to partner banks and their clients. The Bank also works together with the Turkish Ministry of Energy and Natural Resources on the development of renewable energy support mechanisms as well as streamlining the licensing regime.
Promoting the use of sustainable energy and more environmentally friendly sources of energy is a priority for the EBRD in Turkey. Almost half of the Bank’s projects in Turkey are in sustainable energy.
The Bank is a major investor in Turkey and to date has invested over €9.5 billion in various sectors of the country’s economy, with almost all investments in the private sector.
In 2017 the EBRD expects to exceed €1.5 billion in investments.