GGF, Yapı Kredi Leasing support renewables in Turkey with loan package of EUR 20 million

The Green for Growth Fund – GGF invested in Turkey’s Yapı Kredi Leasing for the fourth time. The senior loan of EUR 20 million is primarily intended for rooftop solar installations at industrial facilities.

The Green for Growth Fund (GGF) said it provided a senior loan of EUR 20 million to Yapı Kredi Leasing, based in Turkey. The main purpose of the financial package is to expand the availability of renewables, in particular rooftop photovoltaics or PV for self-consumption at industrial facilities.

The two institutions target 38.6 GWh of primary energy savings per year and the annual reduction of carbon dioxide – CO2 emissions by 8,100 tons. Facilities generating green energy can also help businesses cut costs, the announcement adds.

Fourth transaction in longstanding partnership

As the country’s largest leasing provider with an extensive renewables portfolio, Yapı Kredi Leasing is ideally positioned to expand the availability of such measures to businesses across the country, GGF said and noted it is its fourth investment in the Turkish financial institution.

Yapı Kredi Leasing is creating sustainable value for all stakeholders and setting an example for all sectors, General Manager Fatih Torun says

Yapı Kredi Leasing displays great sensitivity to protect natural resources and to use them in the most efficient way, according to its General Manager Fatih Torun. “We believe that the contribution of companies in the struggle against climate change is significant. We will help businesses reduce costs, energy consumption and CO2 emissions in line with the understanding of creating sustainable value for all our stakeholders and setting an example for all sectors,” he asserted and vowed to continue with innovative practices in sustainable financing, climate change and its impacts.

Businesses can reduce energy costs, CO2 emissions

Yapı Kredi Leasing has been an important partner since 2010, GGF Chairman Olaf Zymelka stated. “Time and again we have seen the successful conversions of our various investments made in the past, and we are optimistic about this investment translating into more businesses increasing their use of renewable energy – helping them reduce their energy costs as well as CO2 emissions,” in his words.

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.