TurSEFF III - Garanti BBVA Leasing II

Location:

Turkey

Project number:

52543

Business sector:

Financial institutions

Notice type:

Private

Approval date:

21 Sep 2021

Status:

Disbursing

PSD disclosed:

21 Sep 2021

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Project Description

A senior unsecured loan of up to USD 25 million (or its EUR or TRY equivalent)[1] , 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"). 

Project Objectives

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.

[1] Based on the exchange rate available at the date of each respective disbursement request that is sent to the Bank.

Transition Impact

The Green and Competitive qualities of TurSEFF III.

  1. 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.
  2. 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.

 

Client Information

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

USD 25,000,000.00

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

USD 25,000,000.00

Additionality

Additionality of the projectstems from the following sources:

  1. 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.
  2. 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

Damla Binici
DBinici@garantileasing.com.tr
+90 216 625 41 50
+90 216 625 41 50
https://www.garantibbvaleasing.com.tr/
Çamçesme Mahallesi,Tersane Caddesi No:15, Pendik, 34899, Istanbul

PSD last updated

23 Sep 2021

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.

 

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