EBRD further assists Turkey to reduce its dependence on fossil fuels

Azerbaijan , Baku, Sept. 29 / Trend , G.Dadashova /

The EBRD has extended its financing facility to support Turkey’s investments in renewable energy and energy efficiency projects to increase energy savings and reduce carbon emissions, EBRD reported.

“By extending the Mid-size Sustainable Energy Financing Facility, or MidSEFF, originally launched in December 2010, the Bank will continue helping Turkey to reduce its dependence on fossil fuels by financing private sector energy efficiency investments in mid-size sustainable energy projects with the total investment cost of up to €50 million,” the report reads.

The EBRD will offer a total of €225 million in loans to Turkish banks for on-lending to private sector borrowers to undertake mid-size renewable energy, waste-to-energy and industrial energy efficiency investments.

Yapi Kredi Bank (YKB) is the first local bank to join the extended MidSEFF. Through the purchase of notes issued by YKB under its established Diversified Payment Rights securitization program, it received a total of €75 million from the EBRD for on-lending to eligible sub-borrowers.

“Since its launch almost a year ago, the MidSEFF has been an important component of the EBRD’s support of Turkey’s long-term energy strategy. We have so far provided around €300 million in financing to four leading banks in Turkey. Building on our success we are pleased to welcome new Turkish commercial lenders to our extended facility. Our joint cooperation brings tangible results, unlocking the potential that renewable energy resources have in Turkey,” EBRD Director for Turkey Michael Davey said.

The Bank will provide financing to participating Turkish commercial banks through diversified payment rights securitization programs, established by those banks. In addition, the EBRD will undertake direct risk participations with the same banks in selected sub-projects up to a total value of €75 million.

As in previous MidSEFF investments, additional comprehensive technical assistance, funded by the European Union and other prospective donors, will be made available to support the preparation and appraisal of MidSEFF sub-projects in Turkey.

The four banks involved in the previous MidSEFF were Türkiye Garanti Bankasi A.Ş., DenizBank, Vakif Bank and Akbank.

The Bank focuses on renewable and sustainable energy, small business development in the regions, agribusiness, municipal, environment and other infrastructure, and privatization In Turkey.

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