Euro bank supports Turkish renewable projects with $85 million loan to TSKB
The European Bank for Reconstruction and Development (EBRD) has said in response to growing demand for green energy it is providing an $85 million loan to the Industry Development Bank of Turkey (TSKB) to finance private mid-cap companies investing in renewable energy and resource efficiency projects in Turkey.
In a statement on Dec. 27, the EBRD said that the financing would contribute toward a green economy by supporting solar, hydropower, wind, geothermal, waste-to-energy and energy efficiency projects as well as water-saving and waste minimization.
“Part of the EBRD’s strategy in Turkey is to support the country in addressing the challenges of a growing demand for electricity and diversifying away from imported fossil fuels. The use of renewable sources of energy will also help combat climate change,” read the statement.
“We are pleased to support TSKB’s efforts to promote resource efficiency and renewable energy financing through its tailored lending products. By providing financing to mid-cap companies to undertake green investments, the EBRD is contributing to their sustainable development and to the improvement of the overall competitiveness of the Turkish economy,” said Arvid Tuerkner, EBRD managing director for Turkey.
TSKB CEO Suat İnce said sustainable investments have reached approximately 60 percent in TSKB’s loan portfolio.
“In this context, we are very pleased to provide additional support to Turkey’s transition to a low carbon economy through our cooperation with EBRD. This new financing facility focusing on renewable energy and resource efficiency, which are the top priority investment areas of our country, also reaffirms the confidence in the general Turkish economy,” he added.
The loan comes under the EBRD’s 1.6 billion euro Mid-size Sustainable Energy Financing Facility (MidSEFF) for Turkey.
To date, nearly 60 projects have been financed under this framework through seven Turkish banks, installing over 1 GW of renewable energy capacity by private commercial and industrial companies, according to the statement.
The current phase of MidSEFF is supported by the European Union, which has provided 2.2 million euros in grant funding, enabling the EBRD to deliver expert advice to partner banks and their clients, read the statement.
The bank also works together with the Turkish Energy and Natural Resources Ministry on the development of renewable energy support mechanisms as well as streamlining the licensing regime, it added.