MidSEFF III - TSKB

Location:

Turkey

Project number:

48724

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Target board date:

29 Nov 2017

Status:

Disbursing

PSD disclosed:

27 Oct 2017

Translated version of this PSD: Turkish

Project Description

The loan agreement is signed to provide up to USD 85 million financing to Turkiye Sinai Kalkinma Bankasi ("TSKB") 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.

Project Objectives

MidSEFF III builds on the success of MidSEFF & MidSEFF II and is aimed at i) increasing financial intermediation for RE and ResE investments to close these sectors' remaining financing gaps in Turkey, ii) improving the Participating Financial Institutions (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

TURKIYE SINAI KALKINMA BANKASI AS

TSKB is Turkey's first and only privately owned development bank. TSKB primarily offers corporate lending, project finance and other complementary corporate banking instruments in Turkey with a focus on sustainable investment areas. At the same time and in its capacity as an effective investment bank, TSKB is also active in offering investment banking and consultancy services to its customers. As of June 2017, TSKB had about 1% market share with EUR 6.4 billion total assets,  R4.9 billion loans and EUR0.8 billion capital. The bank is listed in Borsa Istanbul and rated Ba1 (negative outlook) by Moody's and BB+ (stable outlook) by Fitch, as of October 2017.

EBRD Finance Summary

USD 85,000,000.00

Up to USD 85,000,000.00

Total Project Cost

USD 85,000,000.00

Up to USD 85,000,000.00

Environmental and Social Summary

Categorised FI (ESP2014). TSKB 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. TSKB is satisfactorily complying with the PRs under its existing exposures with the EBRD and has regularly provided Annual Environmental and Social Reports. TSKB will also be required to ensure that subloans 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 supported by a comprehensive TC support programme in the amount of EUR 2.2 million provided by the European Union under the action entitled "Enhancement of the Turkish Energy Sector in line with EU Energy Strategies".

Company Contact Information

Mr. Coskun Kanberoglu (Head of Development Finance Institutions Department)
developmentfinanceinstitutions@tskb.com.tr
+90-212 334 5100
+90-212 334 5234
www.tskb.com.tr
Meclisi Mebusan Cad. 81 Findikli Istanbul Turkey

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