QNB Finans Finansal Kiralama A.S., a leasing subsidiary of Turkey’s QNB Finansbank, has received a EUR 25 million loan from the European Bank for Reconstruction and Development (EBRD) to on-lend to small and medium-sized enterprises (SME) for energy efficiency investments.
The EBRD loan is extended under the third phase of the Turkey Sustainable Energy Financing Facility (TurSEFF III) which provides financing of EUR 400 million to commercial banks and leasing companies for on-lending to private sector SMEs as well as public sector beneficiaries for sustainable energy investments, according to a news release from the EBRD.
Sub-leases under the credit line will contribute towards building a green economy by facilitating the expansion of resource efficiency and renewable energy lending in Turkey. Examples of possible investments include energy efficiency, water efficiency, waste minimization, and small-scale renewable energy investments, the EBRD said.
“Our financing provided to QNB Finans Leasing will encourage Turkish companies to install resource-efficient equipment and generate significant benefits in terms of cost savings, avoided energy and capacity costs, as well as reduced emissions. Leasing is a particularly efficient means by which to address the financial needs of local enterprises and is an excellent way to finance capital investments such as high tech equipment offering an attractive alternative to outright purchase,” said EBRD First Vice President Jürgen Rigterink during a visit to Turkey.
“It is the first time that we are working with the EBRD. This significant partnership will enable us to finance renewable energy investments of our SME clients. The financing will help expand resource efficiency in Turkey, while our customers will benefit from long-term funding and reduced costs,” said QNB Finans Leasing General Manager Metin Karabiber.
The EBRD has invested EUR 10 billion in various sectors of the Turkish economy since 2009, with almost all investment made in the private sector.