TurSEFF III - Aklease II

Location:

Turkey

Project number:

52713

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Approval date:

13 Apr 2021

Status:

Approved

PSD disclosed:

14 Apr 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

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.

Project Objectives

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.

Transition Impact

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.

Client Information

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

EUR 25,000,000.00

A senior unsecured loan of up to EUR 25 million (or its USD equivalent).

Total Project Cost

EUR 25,000,000.00

Additionality

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

Avni Bayazit
avni.bayazit@aklease.com
+90 (0) 212 386 96 53
+ 90 (0) 212 386 96 59
www.aklease.com
Sabanci Center Kule:2 Kat: 9 4.Levent 34330, ISTANBUL

PSD last updated

14 Apr 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.

 

Share this page: