- EBRD providing €40 million loan to Is Leasing
- Funding under EU-backed TurSEFF III to broaden local enterprises’ access to climate finance
- Building resilience of Turkish economy by boosting resource efficiency and renewables
In its first transaction with Turkey’s Is Finansal Kiralama A.S. (Is Leasing), the European Bank for Reconstruction and Development (EBRD) is providing a €40 million loan for on-lending to eligible companies to finance investments in resource efficiency and small-scale renewable energy projects.
Greening the Turkish economy is one of the EBRD’s main goals in the country. The Bank is committed to providing funds and policy support that will help Turkey cope with the coronavirus crisis and use the current situation to “tilt to green” decisively.
The loan will also help strengthen the financial sector in the country and contribute to a more rapid increase in the use of leasing, a viable alternative to debt financing.
The loan is extended under the Turkey Sustainable Energy Financing Facility (TurSEFF) backed by the European Union and funds from Republic of Turkey Ministry of Treasury and Finance. Launched in 2010, the credit line has provided €666 million to finance more than 1,800 projects, helping to install a total of 582 MW of renewable energy capacity in the country.
Is Leasing is the second-largest leasing company in terms of leasing receivables in Turkey and is a subsidiary of IsBank, Turkey’s largest private lender.
The EBRD is a leading institutional investor in Turkey and to date has invested almost €13 billion in the country through 334 projects, with 95 per cent of this in the private sector. In 2020, the Bank responded to the Covid-19 pandemic by stepping up its financing in Turkey to €1.7 billion from €1 billion in 35 projects in 2020.