Senior loan of up to EUR 40 million (or its USD or TRY equivalent) financing to Is Finansal Kiralama A.S. ("Is Leasing"), a subsidiary of IsBank and the second largest leasing company in Turkey, under the Turkey Sustainable Energy Financing Facility III ("TurSEFF III"). The proceeds of the EBRD's investment will be used to on-lend to eligible companies to finance resource efficiency and small scale renewable energy investments. The proposed transaction will be the sixth under TurSEFF III framework, the fourth financing to a leasing company and the first transaction with the client.
The operation will contribute to the objectives of TurSEFF III by supporting the "Green" and "Competitive" transition impact qualities towards building a green economy by facilitating the expansion of resource efficiency and renewable energy lending while building a more competitive financial sector through developing the internal capacity of the participating financial institutions for financing green economy projects in Turkey.
ETI score: 75
The project will support a strong player in the leasing market, which has the willingness and the ability to catalyse green economy in these extraordinary and challenging times. The project is particularly relevant given the market disruption and impact of the Covid-19 crisis on the Turkish economy and expected to contribute to the transition impact of TurSEFF III, supporting the "Green" and "Competitive" transition qualities.
IS FINANSAL KIRALAMA AS
Is Leasing was established in 1988 as a partnership of International Finance Corporation (IFC), Societe Generale, IsBank and TSKB. Currently, IsBank and TSKB are the two parents of the company with 30.4% and 29.5% shares respectively while the remaining shares (40.1%) are quoted on Borsa Istanbul with a market cap of EUR 0.3bn (as of 26/01/2020). Is Leasing is a joint stock leasing company incorporated in Turkey. It is the second largest leasing company in Turkey by leasing receivables with around 11% market share. At 1H20, Is Leasing had EUR 1.3bn in assets, EUR 177m in equity, and recorded a EUR 8m profit on consolidated basis. Is Leasing is rated B+ (negative) by Fitch in line with its parents' rating.
EBRD Finance Summary
The loan will be provided in three tranches with the first tranche (up to EUR 15 million) being committed and the second and third tranches being uncommitted (up to EUR 15 million and EUR 10 million, respectively).
Total Project Cost
The additionality derives from i) the financing structure of the project in terms of amount which is not available in the market from a singular lender on reasonable terms, ii) standard-setting by helping the company to achieve higher standards, and iii) knowledge, innovation and capacity building, as the project will support capacity building of the company for financing green economy projects.
Environmental and Social Summary
Categorised FI (ESP 2019). Is Leasing is a new client and will be required to comply with the EBRD's Performance Requirements (PRs) 2, 4 and 9, adopt and implement the EBRD's Environmental and Social Risk Management Procedures for Leasing Activities and submit Annual Environmental and Social Reports to the Bank. The overall risk profile is considered to be low to medium and the EBRD will be working with the client to update the Environmental and Social Management System in line with the requirements of PR9.
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
+90 212 350 74 50
+90 212 350 74 95
Is Kuleleri Kule 1 Kat: 6 4. Levent 34330 ISTANBUL
PSD last updated
05 Feb 2021
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