TurSEFF III

Location:

Regional

Project number:

47870

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Target board date:

06 Jul 2016

Status:

Board Approved

PSD disclosed:

20 Jun 2016

Sub-projects signed under this framework

Translated version of this PSD: Turkish

Project Description

The EBRD is considering a EUR 400 million framework operation (TurSEFF III) for on-lending to several participating financial institutions in Turkey to finance private and public sector subborrowers investing in small scale renewable energy and resource efficiency projects. TurSEFF III will be the third phase of the TurSEFF framework and builds on the successful implementation of the first two phases. Under the third phase of TurSEFF, the operations will also be expanded to northern Cyprus. The programme in northern Cyprus will be implemented under a different name and will focus entirely on financing of SMEs (hence will not extend financing to public sector sub-borrowers).

Since the launch of TurSEFF's first phase in 2010, the EBRD has provided over EUR 400 million in loans through partner banks to more than 800 sub-projects.

Project Objectives

When first launched in 2010, the objective of TurSEFF was to create a market for energy efficiency and renewable energy financing. TurSEFF III builds on success of the first two phases and now aims to i) further increase financial intermediation for resource efficiency and renewable energy
investments , ii) include public sector investments as well as leasing companies in the programme and iii) further improve the financial insitutions`skills in recognising and assessing a wider range of sustainable energy projects.

Targeting the public sector in Turkey for the first time through a credit line and extending financing to leasing companies is expected to facilitate financing in areas previously not covered by TurSEFF or a similar facility in Turkey.

Transition Impact

The project will generate transition impact by demonstrating the benefits of energy conservation and promoting the expansion of resource efficiency investments in the energy intensive Turkish economy among Turkish SMEs while providing financing and technical assistance for implementing such projects. The TurSEFF III framework will facilitate comprehensive investments in sustainable energy and resource efficiency, thus catalysing an increase in the power generated from renewable sources, reducing fossil fuel imports as well as the overall GHG emissions in Turkey. The project is also expected to transfer and build expertise, among both participating financial institutions and companies, related to resource efficiency and renewable energy investments.

Client Information

Target clients for TurSEFF III are commercial banks and leasing companies in Turkey and northern Cyprus with extensive outreach into the SME segment operating in the industrial and municipal sector.

EBRD Finance Summary

EUR 400,000,000.00

TurSEFF III framework in the amount of up to EUR 400 million.

Total Project Cost

EUR 400,000,000.00

EUR 400 million

Environmental and Social Summary

Categorised FI. Under the facility, all participating financial institutions, commercial banks and leasing companies will be required to comply with the EBRD's performance requirements 2, 4 and 9; adopt appropriate environmental and social risk management procedures relevant to their lending activities; and comply with the environmental and social eligibility criteria for resource efficiency and renewable energy projects.

Technical Cooperation

TurSEFF III will be supported by a technical cooperation programme funded by the European Union under the actions entitled: (i)"Enhancement of Turkish Energy Sector in line with EU Energy Strategies" and (subject to donor approval) (ii) "Private Sector Support Facility for Turkey".

Additionally, a technical cooperation package for the implementation of the programme in northern Cyprus will be funded by "EU SME Competitiveness Integrated Finance Facility in the Turkish Cypriot Community".

Company Contact Information

Oksana Pak
pako@ebrd.com
+90 2123861100
+90 212 3861199
www.ebrd.com
Buyukdere Cad. No.185 Kanyon Ofis Blok. Kat.2 Levent- Istanbul

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