Translated version of this PSD: Turkish
EBRD to provide new financing of USD 110 million to Akbank T.A.S. (Akbank) through the Turkey Mid-size Sustainable Energy Financing Facility III (MidSEFF III), a framework operation of €500 million to be provided by EBRD to eligible participating financial institutions (PFIs) for on-lending to private sector borrowers for renewable energy (RE) and resource efficiency (ResE) investments. Akbank will be the first PFI to be included under MidSEFF III.
The Framework builds on the positive experiences in MidSEFF & MidSEFF II and is aimed at i) increasing financing intermediation for RE and ResE investments to fill these sectors’ remaining financing gaps in Turkey; ii) improving the PFIs’ skills in technical assessment of a broader set of technologies; and iii) increasing the PFIs’ knowledge of relevant EU environmental & social requirements and standards in assessing mid-size RE and ResE investments.
MidSEFF III aims to make a significant transformational impact in three critical areas in addressing climate change challenges in Turkey by (i) accelerating the pace of investments in RE and ResE technologies, supporting a clean energy transition by reducing reliance on fossil fuels in an environmentally sustainable manner; (ii) upgrading from the local environmental standards for sustainable energy projects and aligning those with EBRD Environmental and Social Policy and Performance Requirements and relevant EU standards; and by (iii) increasing private sector involvement in the development and financing of mid-size sustainable energy investments by applying market-based mechanisms such as carbon markets.
Akbank is the fourth largest bank in Turkey ranked by total assets (third largest private bank) as of 3Q2015 with total consolidated assets of around USD 86 billion. Akbank was recognized as the most valuable brand of Turkey according to UK based Brand Finance with an assessed brand value of over USD 2.5 billion and is currently rated Baa3/BBB- by Moody’s/Fitch. Sabanci Holding and affiliated institutions and individuals own 48.9% of Akbank with the remaining shares (51.1%) listed on the Borsa Istanbul.
EBRD Finance Summary
Financing of USD 110 million is extended through an investment in “A-” rated senior bond notes under Akbank’s Diversified Payment Rights (DPR) programme, an established market instrument used by Turkish banks to raise long-term funding in the capital markets.
Total Project Cost
Environmental and Social Summary
Categorised FI. Akbank will be required to comply with EBRD’s Performance Requirements 2 and 9 as well as ensuring that sub-loans under the Facility comply with the requirements of Performance Requirement 9. An independent Project Consultant will be in place to ensure that the RE and ResE sub-loans comply with the national environmental, health, safety and labour requirements and the EBRD's eligibility criteria for small hydropower projects and wind power projects. Akbank will submit Annual Environmental and Social Reports to the EBRD on the implementation of the Performance Requirements.
MidSEFF III is accompanied by a comprehensive TC support programme in the amount of €1.9 million provided by the European Union under the action entitled “Enhancement of Turkish Energy Sector in line with EU Energy Strategies.”
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