A senior unsecured loan of up to USD 25 million (or its EUR or TRY equivalent) , in one or two tranches, with a 2-year tenor and bullet principal repayment available for Garanti BBVA Leasing A.S ("Garanti BBVA Leasing", "the Company" or "GL") under the Turkey Sustainable Energy Financing Facility III ("TurSEFF III" or the "Framework").
The proceeds will be used to fund eligible private sector companies to finance resource efficiency and small scale renewable energy investments. The proposed facility is a follow-up transaction with Garanti BBVA Leasing under TurSEFF III and builds on the Company's successful utilisation of the previous TurSEFF III line signed in June 2018. To date, Garanti BBVA Leasing has demonstrated its ability to adapt its operations in order to meet the requirements of the TurSEFF facility and successfully on-lent the existing TurSEFF line of TRY 270.5 million (EUR 50m equivalent). The Company disbursed 100% of the EBRD funds and the proceeds were allocated to 559 sub-projects.
Green investments are one of the main focus areas of Garanti BBVA Leasing. In line with the Company`s policy to support sustainability goals and increasing customer demand from this segment, it expects to grow in the energy and renewable energy sectors in the upcoming periods. The proposed facility will help the Company to continue to expand its on-lending to private sector SMEs for energy efficiency, water efficiency, waste minimisation, and small-scale renewable energy investments in compliance with the Policy Statement under the Framework.
 Based on the exchange rate available at the date of each respective disbursement request that is sent to the Bank.
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 Garanti BBVA Leasing for green investments under TurSEFF III.
GARANTI BBVA FINANSAL KIRALAMA AS
Garanti BBVA Finansal Kiralama A.S. ("GL", "Garanti BBVA Leasing", or the "Company") is a leasing company incorporated in Turkey. Garanti BBVA Leasing was established in 1990 as a fully-owned subsidiary of GarantiBBVA ("GB" or the "Parent"), which in turn is 49.85% owned by Spanish banking group Banco Bilbao Vizcaya Argentaria S.A. ("BBVA"). The Company is the 5th largest leasing company (out of 22) in Turkey with 9% market share by net lease receivables at YE20 and rated B+ (stable) by Fitch, in line with its parent's rating. It has a subsidiary, Garanti Fleet, which carries out vehicle fleet leasing under operational lease arrangements.
EBRD Finance Summary
A senior unsecured loan of up to USD 25 million (or its EUR or TRY equivalent), available in one or two tranches.
Total Project Cost
Additionality of the projectstems from the following sources:
- Financing structure: The Project contributes to diversification of Garanti BBVA Leasing`s funding and supports the Company in acquiring medium-term external financing in local currency in a distorted market environment due to Covid-19.
- Standard-setting: helping projects and clients achieve higher standards: The transaction will support capacity building for green financing projects, higher standards over energy and resource efficiency and climate resilience financing.
Environmental and Social Summary
Categorised FI (ESP 2019): GL is an existing client with a well-developed ESMS and will be required to continue to comply with EBRD's Performance Requirements (PRs) 2, 4 and 9; continue to implement the applicable E&S Risk Management Procedures for Leasing Companies and submit the Annual Environmental and Social Reports to the Bank. Garanti BBVA Leasing will be required to apply the updated Exclusion List introduced with ESP 2019 as well as the Referral list.
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
+90 216 625 41 50
+90 216 625 41 50
Çamçesme Mahallesi,Tersane Caddesi No:15, Pendik, 34899, Istanbul
PSD last updated
23 Sep 2021
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