European bank provides new funds for Turkish renewable energy projects via Akbank
ISTANBULThe European Bank for Reconstruction and Development (EBRD) has said that in response to growing demand it has been providing $110 million in new funds to Akbank to finance private companies investing in renewable energy and resource efficiency projects in Turkey in a written statement on June 30.
It is part of the EBRD strategy to help Turkey meet growing demand for electricity and diversify away from expensive imported fuel, while addressing climate change, noted the bank.
EBRD funds are extended through an investment in investment grade rated senior U.S. dollar-denominated notes issued under Akbank’s Diversified Payment Rights (DPR) program, an established market instrument used by Turkish banks to raise long-term funding in the capital markets, it added.
The financing – supported by the Turkish Ministry of Energy and Natural Resources and a 1.9 million euros of grant from the European Union – will benefit renewable energy and resource efficiency projects in Turkey including solar, hydropower, wind, geothermal, waste-to-energy and energy efficiency as well as water saving and waste minimization projects.
The investment comes under the EBRD’s recently expanded Mid-size Sustainable Energy Financing Facility (MidSEFF) now totaling 1.5 billion euros, according to the statement.
So far 47 projects have been financed through seven Turkish banks, helping to build over 800 megawatts (MW) of additional renewable energy capacity. The European Union is supporting the program with a combined 6.8 million euros in grant funding which enables the EBRD to provide expert advice to both partner banks and their clients, added the statement.
Investing in sustainable energy and resource efficiency is a strategic priority for the EBRD in Turkey, said the bank.
Almost half of the EBRD’s total portfolio in Turkey is in sustainable energy and since 2009 the EBRD has invested over 3 billion euros in more than 75 such projects, including two of the country’s largest wind farms – Bares and Rotor – and the largest geothermal power plant in Turkey (and second largest in Europe), Efeler, according to the statement.