EBRD providing $55 million to support renewable energy and efficiency projects in Turkey
It is part of the EBRD’s strategy to help Turkey meet a growing demand for electricity and diversify away from expensive imported fuel, while addressing the challenges of climate change, EBRD announced.The EBRD funds are extended through an investment in “A-” rated senior notes issued under Isbank’s Diversified Payment Rights (DPR) securitisation programme, an established market instrument used by Turkish banks to raise long-term funding.
Funding for solar investments
The financing – supported by a €1.9 million grant from the European Union – will benefit renewable energy and resource efficiency projects in Turkey including solar, hydropower, wind, geothermal, waste-to-energy and energy efficiency as well as water saving and waste minimisation projects.
900 MW renewable energy projects supported
The investment comes under the EBRD’s recently expanded Mid-size Sustainable Energy Financing Facility (MidSEFF) now totalling €1.5 billion. So far 50 projects have been financed through seven Turkish banks under the facility, helping to build over 900 MW of additional renewable energy capacity.
Isbank largest private lender
Ișbank is the largest private lender in Turkey and a long-standing partner of the EBRD. The new financing builds on Ișbank’s solid track record in on-lending the Bank’s funds aimed at renewable energy and resource efficiency projects. Noel Edison, Director of Financial Institutions at the EBRD, said: “The response to the previous round of financing we offered to Ișbank under our MidSEFF programme was impressive. The lender has financed nine projects helping to create over 200 MW in additional renewable capacity and its pipeline for further successful investments by Turkish corporates remains strong.”
Cooperation with the Ministry of Energy
Investing in sustainable energy and resource efficiency is a strategic priority for the EBRD in Turkey. Almost half of the Bank's total portfolio in Turkey is in sustainable energy and since 2009 the EBRD has invested over €3 billion in more than 75 such projects, The EBRD is also working closely with the Turkish Ministry of Energy and Natural Resources and has helped develop the country’s first National Renewable Energy Action Plan to attract more investment in renewable energy projects. The Bank has also supported the preparation of a National Energy Efficiency Action Plan, which is expected to include a wide range of sector-based resource efficiency measures aimed at achieving Turkey’s 2023 energy efficiency targets.
EBRD with three offices in Turkey
The EBRD started investing in Turkey in 2009 and currently operates from offices in Istanbul, Ankara and Gaziantep. To date it has invested over €8 billion in the country through more than 200 projects in infrastructure, energy, agribusiness, industry and finance. It has also mobilized nearly €20 billion for these ventures from other sources of financing. Some 98 per cent of the Bank’s investments in Turkey are in the private sector. (HCN)