GGF provides EUR 25 million in green finance to DenizBank in Turkey

GGF EUR 25 million in green finance DenizBank Turkey

Photo: Pixabay


July 22, 2020



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July 22, 2020



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A senior loan of EUR 25 million to the new partner in Turkey will increase the uptake of renewable energy, energy efficiency and resource efficiency measures, GGF said. The deal with DenizBank is seen resulting in annual primary energy savings of 58.4 GWh and a CO2 emission reduction of 13,000 tons.

The Green for Growth Fund (GGF) has provided a senior loan of EUR 25 million to new partner DenizBank. The investment will increase access to green finance for renewable energy, energy efficiency and resource efficiency projects in Turkey, contributing to the country’s goal to transition to a greener economy, the announcement reveals.

Established in 1997, DenizBank has a nationwide network of almost 750 branches. The investment is largely intended to strategically boost lending for renewables, especially for industrial clients to install rooftop photovoltaic systems. Measures in the other segment include the expansion and modernization of equipment by agribusinesses. Expected energy savings are estimated at 58.4 GWh each year, preventing over 13,000 tons of CO2 emissions per annum.

GGF’s Zymelka: Demand in Turkey is clear

“The GGF is delighted to establish this new partnership with DenizBank, an institution that is strongly committed to providing financing for environmentally sustainable measures,” Chairman Olaf Zymelka stated.

The lending package is intended for industrial clients to install rooftop photovoltaic systems and for agricultural producers to expand and to modernize equipment, alongside resource efficiency projects and other green energy solutions

“There is a clear demand in Turkey for ways to reduce energy consumption and transition to more renewable energy sources, which aligns with GGF’s mission to enhance energy and resource efficiency and increase the uptake of renewable energy. Especially in times like these, where local businesses are particularly impacted by the economic effects of the COVID-19 crisis, it is important to ensure their continued access to financing that helps them reduce their carbon footprint and save costs,” he added.

Green energy is of vital importance

DenizBank’s Treasury and FI Group Executive Vice President Bora Böcügöz said energy efficiency and renewable energy investments are of vital importance for the present and future of Turkey. “DenizBank has always played a substantial role in financing investment projects in the energy sector, aiming to offer the maximum leverage for the sectors that are engines of economic growth. As DenizBank, we continue to work having such perspective in mind, and contribute to financing of environmentally conscious energy projects,” he asserted.

DenizBank aims to offer the maximum leverage for engines of economic growth

The lender is “more than happy” to provide support for producers and companies that have difficulties in accessing funds amid the coronavirus pandemic, according to Böcügöz. DenizBank is owned by Emirates NBD.

Direct, indirect financing

The Green for Growth Fund, which recently extended its partnership with Yapı Kredi Leasing, invests in measures designed to cut energy use and CO2 emissions, and improve resource efficiency in 19 markets across Southeast Europe, the Caucasus, Ukraine, Moldova, the Middle East and North Africa. The fund provides such financing directly to renewable energy projects, corporates and municipalities or indirectly via selected financial institutions.

GGF is a public-private partnership founded in December 2009 by Germany’s KfW Development Bank and the European Investment Bank, with financial support from the European Commission, the German Federal Ministry for Economic Cooperation and Development (BMZ), the European Bank for Reconstruction and Development and the Austrian Development Bank (OeEB).

It was later joined by donors, other international financial institutions and institutional private investors, including the International Finance Corporation, Dutch development bank FMO and German ethical bank GLS.

The fund started the Green for All forum last year for dialogue in the microfinance ecosystem about promoting green finance for households and small and medium-sized enterprises. Finance in Motion advises the GGF.

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