GEFF - Turkey - Yapi Kredi Leasing

Location:

Turkey

Project number:

53681

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Approval date:

20 Jul 2022

Status:

Passed Final Review, Pending Approval

PSD disclosed:

28 Apr 2022

Project Description

Provision of a senior unsecured loan of up to EUR 50mn (or USD equivalent) under the Turkey GEFF Framework to Yapi Kredi Finasal Kiralama AO ("Yapi Kredi Leasing" or "YKL"). The proceeds of the loan will be used to finance eligible sub-projects, selected according to the technical, financial and environmental eligibility criteria as per the Turkey GEFF Policy Statement. 

Project Objectives

The project will enable YKL to finance green economy investments of its lessees in areas, including among others, energy efficiency, renewable energy and climate resilience.

Transition Impact

ETI score: 70

Green: the project will promote the transition to environmentally sustainable, low-carbon and climate-resilient economies in Turkey.

Well-governed: the transaction will contribute towards YKL's corporate climate governance practices.

Client Information

YAPI KREDI FINANSAL KIRALAMA AO

The largest leasing company in Turkey at 1H21-end (in terms of net lease receivables) and a fully owned subsidiary of Yapi ve Kredi Bankasi AS ("Yapi Kredi Bank").

EBRD Finance Summary

EUR 50,000,000.00

Total Project Cost

EUR 50,000,000.00

Additionality

Key sources of additionality under the project are (i) Innovative financing structures and/or instruments (financing instrument that integrates climate and ESG standards), (ii) Risk mitigation (helping YKL mitigate carbon transition risk and take climate action) and (iii) Standard setting (helping YKL achieve higher equality of opportunity/inclusive standards).

Environmental and Social Summary

Categorised FI (ESP 2019): YKL will be required to comply with PRs 2, 4 & 9, and further, implement and comply with the relevant EBRD's Environmental & Social (E&S) Procedures. YKL will be required to implement the EBRD's E&S Eligibility Criteria for Renewable Energy Projects, as applicable for each sub-project. The project's use of proceeds may include solar sub-projects, which will be managed in-line with EBRD's "The Proposed Management Approach for Solar Supply Chain Risk Management," and any subsequent guidance developed under that approach. YKL will be also required to submit annual environmental and social reports to EBRD.

Technical Cooperation and Grant Financing

The project will be supported by a TC package for the engagement of the Facility Consultant (FC), responsible for overseeing the general operation of the project, for origination, review and approval of sub-projects; and for providing policy dialogue and other services to help achieve EBRD's aims for the project.

Company Contact Information

Meltem Afacan
Meltem.Afacan@ykleasing.com.tr
+90 212 339 90 00
https://www.ykleasing.com.tr/

PSD last updated

28 Apr 2022

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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