European bank offers financing for Turkish renewable energy via İş Bank

ISTANBUL

The European Bank for Reconstruction and Development (EBRD) has said it is providing $55 million in new funds to Turkish lender İş Bank to finance private companies investing in renewable energy and resource efficiency projects in Turkey, in a written statement on Oct. 25.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, read the statement.The EBRD funds are extended through an investment in “A-” rated senior notes issued under İş Bank’s Diversified Payment Rights (DPR) securitization program, an established market instrument used by Turkish banks to raise long-term funding.The financing – supported by a 1.9 million-euro 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 minimization projects, according to the statement.The investment comes under the EBRD’s recently expanded Mid-size Sustainable Energy Financing Facility (MidSEFF) now totaling 1.5 billion euros. 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, said the bank.İş Bank is the largest private lender in Turkey and a long-standing partner of the EBRD. The new financing builds on İş Bank’s solid track record in on-lending the Bank’s funds aimed at renewable energy and resource efficiency projects, added the EBRD.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 as the EBRD has invested over 3 billion euros in more than 75 such projects, read the statement.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, it added.