European Bank for Reconstruction and Development (EBRD) announced today it is providing US$55 million in new funds to Turkish lender Isbank to finance private companies investing in renewable energy and resource efficiency projects in Turkey.
The financing — supported by a $2.1 million grant from the European Union — will benefit renewable energy and resource efficiency projects in Turkey including hydropower, other renewable energy sources and waste minimization projects.
The EBRD funds are extended through an investment in “A-” rated senior notes issued under Isbank’s Diversified Payment Rights securitization program, an established market instrument used by Turkish banks to raise long-term funding.
The investment comes under EBRD’s recently expanded Mid-size Sustainable Energy Financing Facility (MidSEFF) now totaling about $1.63 billion. So far, according to an EBRD press release, 50 projects have been financed through seven Turkish banks under the facility, helping to build over 900 MW of additional renewable energy capacity.
Noel Edison, director of Financial Institutions at EBRD, said, “The response to the previous round of financing we offered to Isbank under our MidSEFF program 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.”
Investing in sustainable energy and resource efficiency is a strategic priority for EBRD in Turkey. Almost half of the bank’s total portfolio in Turkey is in sustainable energy, and since 2009 EBRD has invested more than $3.26 billion in more than 75 renewable energy projects.
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.