The European Bank for Reconstruction and Development (EBRD) has provided a loan of 25 million euros (nearly $30 million) to a leasing company in Turkey for sustainable energy investments, the EBRD said on Tuesday.
In a written statement, the bank said the financial agreement was signed with QNB Finans Finansal Kiralama - a leasing subsidiary of the Turkish lender QNB Finansbank - with the aim of broadening access to finance for the country's small and medium-sized enterprises (SMEs).
"The EBRD loan is extended under the third phase of the Turkey Sustainable Energy Financing Facility (TurSEFF III) which provides financing of €400 million [around $450 million] to commercial banks and leasing companies for on-lending to private sector SMEs as well as public sector beneficiaries for sustainable energy investments," the bank said.
EBRD First Vice President Jurgen Rigterink said the EBRD loan will encourage Turkish companies to install resource-efficient equipment and generate significant benefits in terms of cost savings, avoided energy and capacity costs, as well as reduced emissions, the statement said.
"Leasing is a particularly efficient means by which to address the financial needs of local enterprises and is an excellent way to finance capital investments such as high tech equipment, offering an attractive alternative to outright purchase," Rigterink said.
Metin Karabiber, general manager of QNB Finans Leasing, pointed out that the finance agreement is the first partnership between the EBRD and his company.
"This significant partnership will enable us to finance renewable energy investments of our SME clients," he said. "The financing will help expand resource efficiency in Turkey, while our customers will benefit from long-term funding and reduced costs."
Since 2009, the EBRD has invested around €10 billion (approximately $12 billion) in Turkey - a top destination for the bank's finance - through more than 250 projects over the past nine years in Turkey. In 2017 alone, the EBRD invested 1.6 billion euros (some $1.8 billion) in 51 projects in the country - nearly a third of this financing was provided in Turkish lira.