A senior unsecured loan of up to EUR 25 million, to be provided in one or two tranches. The loan will have a tenor of 3-years and 1 month from the signing date of the loan agreement and will be provided under the Turkey Sustainable Energy Financing Facility III ("TurSEFF III" or the "Framework", BDS16-107).
The proposed facility under TurSEFF III will be the EBRD`s first transaction with BNP Paribas Finansal Kiralama A.S. The client has demonstrated strong interest to participate in the TurSEFF programme and contribute to the achievement of its objectives. The client has an ambition to diversify its funding base which the proposed facility would support.
Green and sustainable investments are among the main focus areas of BNP Paribas Finansal Kiralama A.S. and the proposed facility will help the Company to expand its on-lending to private sector SMEs (incl. micro segment) for energy efficiency, water efficiency, waste minimisation, and small scale renewable energy investments.
ETI score: 75
The Green and Competitive qualities of TurSEFF III.
- The Project will contribute towards building a green economy by facilitating the expansion of resource and energy efficiency, renewable energy lending and positive demonstration effects of green economy projects under TurSEFF III.
- The Project will also contribute towards building a more competitive financial sector through developing the internal capacity of BNP Paribas Finansal Kiralama A.S. for green investments under TurSEFF III.
BNP PARIBAS FINANSAL KIRALAMA AS
BNP Paribas Finansal Kiralama A.S. is majority owned by BNP Paribas S.A. ("BNPP") (95.48% stake), with the remaining 4.52% stake held by Turk Ekonomi Bankasi A.S ("TEB"). The Company specialises in financing solutions for professional equipment (agricultural, construction & building and industrial) and technological equipment (office, medical and IT). BNP Paribas Finansal Kiralama A.S. benefits from the global expertise of BNPP as well as TEB's extensive branch network in Turkey and its client expertise. BNP Paribas Finansal Kiralama A.S. is the 6th largest company in the sector as of YE20, with a market share of 6.2% by total assets and 5.9% by leasing receivables.
EBRD Finance Summary
Total Project Cost
EBRD financing is additional, especially in terms of providing longer tenor which is not available from local commercial sources at reasonable terms. By providing a long-term financing, the EBRD effectively helps to lengthen average tenor of the client's non-parent funding.
Environmental and Social Summary
Categorised FI (ESP 2019): BNP Paribas Finansal Kiralama A.S. is a new client and will be required to comply with EBRD's PRs 2, 4 & 9, and further, implement and comply with the relevant EBRD's Environmental & Social (E&S) Procedures for Leasing companies. The E&S due diligence for BNP Paribas Finansal Kiralama A.S. included the review of the E&S due diligence questionnaire. The client benefits from strong BNP Group Policies, and ESD is evaluating a few further details regarding the local implementation of these Group Policies, which will be concluded before signing. Any potential remaining gaps will be addressed before signing and included in an Environmental and Social Management Plan. The company will be required to submit annual environmental and social reports to the Bank.
Technical Cooperation and Grant Financing
TurSEFF III is supported by a technical cooperation programme in the amount of EUR 5.5 million. Funding for the programme is provided by the European Union under two contribution agreements "Enhancement of Turkish Energy Sector in line with EU Energy Strategies" and "EU Instrument for Pre-Accession Assistance (IPA) 2009 Turkey Private Sector Support Facility", and by the Republic of Turkey Ministry of Treasury and Finance under the "Turkey - EBRD Cooperation Fund".
Company Contact Information
Gayrettepe Mah. Yener. Sok. No:1 Kat:2 -3 Besiktas; 34349 ISTANBUL
PSD last updated
25 Oct 2021
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Independent Project Accountability Mechanism (IPAM)
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