Yapı Kredi Bank - II - MidSEFF

Location:

Turkey

Project number:

47627

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Approval date:

27 May 2015

Status:

Signed

PSD disclosed:

27 Jul 2015

Translated version of this PSD: Turkish

Project Description

The EBRD has provided US$ 80 million in new financing to Yapı ve Kredi Bankası (Yapı Kredi) through the Turkey Mid-size Sustainable Energy Financing Facility (MidSEFF), a €1 billion programme through which the EBRD and the European Investment Bank are supporting sustainable energy finance in Turkey. The funds will finance mid-sized renewable energy projects including solar, hydropower, wind, geothermal, waste to energy, and energy efficiency projects.

Transition Impact

MidSEFF aims to address climate change challenges in Turkey by (i) accelerating the pace of investments in renewable energy technologies, (ii) upgrading the local environmental standards for sustainable energy projects and align those with EBRD and EU standards; and (iii) increasing private sector involvement in the development and financing of mid-size sustainable energy investments by assisting project sponsors and participating banks to monetise the carbon credits.

The Client

Yapı Kredi is the fifth largest bank in Turkey ranked by total assets (fourth largest private bank) as of March 2015 with total consolidated assets of €74.5 billion and a market share of around 10 per cent. Yapı Kredi is rated Baa3 (negative) by Moody’s, BB+ (negative) by S&P, BBB (stable) by Fitch. The bank is owned 81.8 per cent by Koç Financial Services (KFS), while the remaining 18.2 per cent of shares is publicly traded on Borsa Istanbul. KFS is a 50-50 joint venture between the Koç Group and UniCredit Bank Austria.

EBRD Finance

US$ 80 million through an investment in “A-” rated senior bond notes under Yapı Kredi’s Diversified Payment Rights (DPR) programme.

Project Cost

Under €1 billion MidSEFF Facility.

Environmental and social categorisation, impact, and mitigation

Categorised FI. Yapı Kredi is satisfactorily complying with the EBRD’s Performance Requirements 2 & 9 under its existing exposure and has regularly provided Annual Environmental and Social Reports. Yapı Kredi will be required to ensure that sub-loans under the facility comply with the requirements of Performance Requirement 9, the eligibility criteria for energy efficiency and submit Annual Environmental and Social Reports to the EBRD. An independent project consultant will be in place to ensure that energy efficiency and renewable energy sub-loans comply with the national Environmental, Social, Health and Safety and Labour requirements and the EBRD's eligibility criteria for small hydropower projects and wind power projects.

Technical Cooperation

MidSEFF is accompanied by a comprehensive technical cooperation programme in the amount of €4.9 million provided by the European Union under its Instrument for Pre-Accession (IPA) 2009 and 2014 agreements, in collaboration with the Turkish Treasury.

Company Contact

Tules Akinci
Head of Debt Capital Markets, Financial Institutions
Yapi ve Kredi Bankasi A.S. - Head Office
Buyukdere Cad. Yapı Kredi Plaza D Block, Levent 34330 Istanbul/ Turkey

Phone: +90 212 3397819
Fax: +90 212 3396060

E-mail: tules.akinci@yapikredi.com.tr

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP 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. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

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