TurSEFF III - BNP Paribas Leasing

Location:

Turkey

Project number:

52943

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Approval date:

19 Oct 2021

Status:

Approved

PSD disclosed:

25 Oct 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 EUR 25 million, to be provided in one or two tranches. The loan will have a tenor of 3-years and 1 month from the signing date of the loan agreement and will be provided under the Turkey Sustainable Energy Financing Facility III ("TurSEFF III" or the "Framework", BDS16-107).

Project Objectives

The proposed facility under TurSEFF III will be the EBRD`s first transaction with BNP Paribas Finansal Kiralama A.S. The client has demonstrated strong interest to participate in the TurSEFF programme and contribute to the achievement of its objectives. The client has an ambition to diversify its funding base which the proposed facility would support.

Green and sustainable investments are among the main focus areas of BNP Paribas Finansal Kiralama A.S. and the proposed facility will help the Company to expand its on-lending to private sector SMEs (incl. micro segment) for energy efficiency, water efficiency, waste minimisation, and small scale renewable energy investments.

Transition Impact

ETI score: 75

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 BNP Paribas Finansal Kiralama A.S. for green investments under TurSEFF III.

Client Information

BNP PARIBAS FINANSAL KIRALAMA AS

BNP Paribas Finansal Kiralama A.S. is majority owned by BNP Paribas S.A. ("BNPP") (95.48% stake), with the remaining 4.52% stake held by Turk Ekonomi Bankasi A.S ("TEB"). The Company specialises in financing solutions for professional equipment (agricultural, construction & building and industrial) and technological equipment (office, medical and IT). BNP Paribas Finansal Kiralama A.S. benefits from the global expertise of BNPP as well as TEB's extensive branch network in Turkey and its client expertise. BNP Paribas Finansal Kiralama A.S. is the 6th largest company in the sector as of YE20, with a market share of 6.2% by total assets and 5.9% by leasing receivables. 

EBRD Finance Summary

EUR 25,000,000.00

Total Project Cost

EUR 25,000,000.00

Additionality

EBRD financing is additional, especially in terms of providing longer tenor which is not available from local commercial sources at reasonable terms. By providing a long-term financing, the EBRD effectively helps to lengthen average tenor of the client's non-parent funding.

Environmental and Social Summary

Categorised FI (ESP 2019): BNP Paribas Finansal Kiralama A.S. is a new client and will be required to comply with EBRD's PRs 2, 4 & 9, and further, implement and comply with the relevant EBRD's Environmental & Social (E&S) Procedures for Leasing companies. The E&S due diligence for BNP Paribas Finansal Kiralama A.S. included the review of the E&S due diligence questionnaire. The client benefits from strong BNP Group Policies, and ESD is evaluating a few further details regarding the local implementation of these Group Policies, which will be concluded before signing. Any potential remaining gaps will be addressed before signing and included in an Environmental and Social Management Plan. The company will be required to submit annual environmental and social reports to the Bank.

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

Bülent Büyükkoç
bulent.buyukkoc@tr.bnpparibas.com
www.leasingsolutions.bnpparibas.com.tr
Gayrettepe Mah. Yener. Sok. No:1 Kat:2 -3 Besiktas; 34349 ISTANBUL

Implementation summary


PSD last updated

25 Oct 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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