Akbank III - MidSEFF III

Location:

Turkey

Project number:

48249

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Target board date:

22 Jun 2016

Status:

Signed

PSD disclosed:

30 Jun 2016

Translated version of this PSD: Turkish

Project Description

EBRD has provided USD 110 million to Akbank T.A.S ("Akbank") under the Turkey Mid-Size Sustainable Energy Financing Facility III ("MidSEFF III") for on-lending to private sector borrowers for renewable energy (RE) and resource efficiency (ResE) investments. This is a follow-up transaction with Akbank under MidSEFF III and builds on the Company's successful implementation of the previous phases of MIDSEFF launched by the EBRD in Turkey.

Project Objectives

MidSEFF III 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.

Transition Impact

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.

Client Information

AKBANK T.A.S.

Akbank is the fourth largest bank in Turkey by total assets (third largest private bank) with total consolidated assets of EUR 80.7 billion as of March 2016. Akbank is currently rated Baa3 by Moody's (negative) and BBB- (stable) by Fitch. Sabanci Holding and affiliated institutions and individuals own 48.9% of Akbank and the remaining shares (51.1%) are listed on Borsa Istanbul.

EBRD Finance Summary

USD 110,000,000.00

Total Project Cost

USD 110,000,000.00

Environmental and Social Summary

Categorised FI. Akbank will be required to comply with EBRD's Performance Requirements ("PRs") 2, 4 and 9 and submit Annual Environmental and Social Reports to the Bank. Akbank is satisfactorily complying with the PRs under its existing exposures with the EBRD and has regularly provided Annual Environmental and Social Reports. Akbank will also be required to ensure that sub-loans under the facilities comply with the requirements of PR9 and submit Annual Environmental and Social Reports to the EBRD. An independent Project Consultant will be in place to ensure that renewable energy and resource efficiency sub-loans comply with the national environmental, health, safety and labour requirements and EBRD's eligibility criteria for small hydropower projects and wind power projects.

Technical Cooperation

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.

Company Contact Information

Akbank Dis Kaynaklar
diskaynaklar@akbank.com
+90 212 385 62 38
+90 212 281 81 88
www.akbank.com

Sabanci Center 4. Levent Istanbul 34330
 

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