Energy Efficiency

EBRD sets EUR 100 million for Vakıfbank to on-lend

Vakıfbank

Published

July 27, 2016

Country

Comments

0

Share

Published:

July 27, 2016

Country:

Comments:

0

Share

The European Bank for Reconstruction and Development said it approved EUR 50 million or its equivalent in dollars or Turkish liras to Vakıfbank (Türkiye Vakıflar Bankası t.a.o.) under the Turkey Sustainable Energy Financing Facility 3 (TurSEFF 3). Another EUR 50 million was set under Turkey Sustainable Energy Financing Facility Framework Ext 1 (TurSEFF 2).

The former line is for on-lending to eligible private and public sector companies to finance resource efficiency and small-scale renewable energy investments, while the latter is a follow-up transaction under TurSEFF 2 and builds on the company’s successful track record in on-lending funds to private sector borrowers for energy efficiency and small-scale green energy endeavors.

Projects can be funded through a range of financing instruments, including but not limited to senior notes issued under the company’s existing diversified payment rights program or residential mortgage covered bonds.

Vakıfbank is the second participating financial institution to receive approval for financing under the TurSEFF 3 framework. On June 30 the EBRD said it has provided USD 110 million (EUR 99.4 million) to Akbank TAŞ under the Turkey Mid-Size Sustainable Energy Financing Facility 3 (MidSEFF 3) for on-lending to private sector borrowers for renewable energy and resource efficiency investments.

TurSEFF 3 builds on success of the first two phases of the framework and aims to further increase financial intermediation for small scale renewable energy investments and a broader range of resource efficiency investments, including energy efficiency, waste minimization, and water savings; to include public sector investments; and to further improve the financial institutions’ skills in recognizing and assessing a wider range of sustainable energy and resource efficiency projects, the press release said.

In addition, TurSEFF 3 will target the municipal sector in Turkey for the first time through a credit line as well as extending financing to leasing companies which is expected to facilitate financing in areas previously not covered by TurSEFF or any other comparable facility in Turkey.

Under TurSEFF 3, transition impact will stem from transfer and dispersion of skills by building expertise among both Vakıfbank and sub-borrowers related to sustainable energy and resource efficient technologies and investments; demonstration of benefits of energy conservation and the promotion of expansion of resource efficiency and renewable energy lending in Turkey; and setting of standards for corporate governance and business conduct by continuing to mainstream EBRD standards, according to the statement.

TurSEFF 3 will be supported by a technical cooperation programme in the amount of EUR 5.8 million. Funding for the programme will be provided by the European Union under contribution agreements ‘Enhancement of Turkish Energy Sector in line with EU Energy Strategies’ and ‘EU Instrument for Pre-Accession Assistance (IPA) 2009 Turkey Private Sector Support Facility’. TurSEFF 2 is supported by a comprehensive technical cooperation programme of EUR 5.4 million to provide implementation support to participating financial institutions and sub-borrowers. Funding is provided by the EU, initially from the EU/EBRD SME Finance Facility (2006 sub-account) and since July 2015, from the same IPA agreement, which provided EUR 1.9 million for the support programme in the Akbank transaction, too.

TurSEFF 2 aims to have a transformational impact in addressing climate change challenges in Turkey in three critical areas. The first is enhancing energy security by improving energy efficiency in key sectors of the economy, specifically targeting small and medium-sized enterprises (SMEs), followed by supporting a clean energy transition by reducing reliance on fossil fuels and focusing on meeting energy needs in an environmentally sustainable manner, thereby reducing greenhouse gas emissions, EBRD said. The third area of impact is increasing private sector involvement in the development and financing of energy efficiency and renewable energy investments.

Transition impact will stem from commercial energy efficiency financing with focus on SMEs; expansion of sustainable energy markets, including increased penetration of low-carbon technologies; and market-supporting behaviours, skills and innovation including the transfer and dispersion of skills to banks and sub-borrowers and long-lasting internal capacity building.

Related Articles

EU energy ministers targets renewables energy efficiency

EU energy ministers aiming at more ambitious renewables, energy efficiency targets

28 June 2022 - The Council of the EU wants to boost the renewables and energy savings targets via the Fit-for-55 package, which depends on upcoming talks

Skrekas Greece triple LNG storage renewable energy capacity

Skrekas: Greece to triple LNG storage, renewable energy capacity

27 June 2022 - Minister of Environment and Energy Kostas Skrekas said the government would mobilize over EUR 44 billion for Greece's energy sector by 2030

Austria ban gas boilers new buildings next year

Austria to ban gas boilers in new buildings in 2023

15 June 2022 - Austria is phasing out fossil fuels in heating, starting with a ban on the installation of gas boilers in new buildings from next year

MRE-GIZ-prosumers-project-june 2022

Germany’s GIZ to help Serbia make renewables available to everyone

09 June 2022 - Minister Zorana Mihajlović signed an agreement with GIZ on the Promotion of Renewable Energy and Energy Efficiency in Serbia