IFC, a member of the World Bank Group, announced a USD 97 million (EUR 85.17 million) financing package to ABank, to increase lending to energy efficiency and renewable energy projects in order to boost sustainable energy investment in Turkey and support micro, small, and medium enterprises, which are essential for economic development and job creation. IFC will directly lend USD 50 million of this loan from its own resources. The remaining is raised through its Managed Co-Lending Portfolio Program, a new syndications platform that offers institutional investors the ability to passively participate in IFC’s future senior loan portfolio, the press release said. European Fund for Southeast Europe (EFSE) is the parallel lender in the project providing EUR 20 million.
IFC said energy efficiency and renewable energy has been in its focus in Turkey. SMEs make up nearly 90% of Turkey’s economy and supporting SMEs to become more energy efficient generates significant social and economic benefits, such as decreasing carbon emissions and installation of environmentally friendly production processes, the press release said. As of 2013, IFC has provided USD 564 million financing for such investments.