Senior unsecured loan of up to EUR 25 million (or its USD equivalent based on the exchange rate available at the date of the disbursement request) to AkLease, under the Turkey Sustainable Energy Financing Facility III ("TurSEFF III" or the "Framework"). 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 eighth sub-project and AkLease's second under the Framework.
The transaction 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: 60
TurSEFF III builds on the success of the first two phases of the framework and aims to (i) further increase financial intermediation for small scale renewable energy investments and a broader range of resource efficiency investments, including energy efficiency, waste minimisation and water savings; (ii) further improve the financial institutions' skills in recognising and assessing a wider range of sustainable energy and resource efficiency projects.
AK FINANSAL KIRALAMA AS
Ak Finansal Kiralama A.S. ("AkLease") is the fifth largest leasing company operating in Turkey in terms of net leasing receivables. The company is a fully-owned subsidiary of a top-tier Turkish bank (Akbank T.A.S.), a joint stock company incorporated in Turkey, which is 48.8% owned by Sabanci Holding with the rest of the shares are publicly traded.
EBRD Finance Summary
A senior unsecured loan of up to EUR 25 million (or its USD equivalent).
Total Project Cost
The additionality derives from i) the financing structure of the project in terms of tenor and grace period which is not available from local commercial sources at reasonable terms especially in the COVID-19 environment, and ii) standard-setting by helping the Company to achieve higher standards.
Environmental and Social Summary
Categorised FI (ESP 2019): Aklease is an existing client with a well-developed Environmental and Social Management System 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. Aklease 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 (0) 212 386 96 53
+ 90 (0) 212 386 96 59
Sabanci Center Kule:2 Kat: 9 4.Levent 34330, ISTANBUL
PSD last updated
14 Apr 2021
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Environmental and Social Policy (ESP)
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More information on the EBRD’s practices in this regard is set out in the ESP.
Integrity and Compliance
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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.
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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 email@example.com to get guidance and more information on IPAM and how to submit a request.