IFC lends $96 million to Yapi Kredi Leasing to promote energy efficiency in Turkey
Baku, Azerbaijan, Sept.17
IFC, a member of the World Bank Group, is lending $96 million to Yapi Kredi Leasing, Turkey's leading leasing company, to increase its leasing operations in energy efficiency and renewable energy projects, IFC said on Sept.17.
This long-term financing to Yapi Kredi Leasing will reduce greenhouse gases since it will finance renewable energy projects. IFC will directly lend $64 million of this loan from its own resources. The remaining $32 million has been raised through the IFC-Managed Co-Lending Portfolio Program, a syndicated platform that allows institutional investors to passively participate in IFC's senior loan portfolio.
"Yapi Kredi Leasing has had a strategic partnership with IFC in sustainable energy financing since 2008. We have worked together to increase lending for energy-efficient machinery and equipment. We believe cooperation with IFC will contribute to our support of the Turkish economy. As the sector leader, we will utilize these resources to help grow MSMEs, the backbone of the country's economy," Ozgur Maras, General Manager of Yapi Kredi Leasing said.
"We are working with Yapi Kredi Leasing to ensure that investments in sustainable energy finance continue to have access to longer-term funding," said Edward Strawderman, IFC Associate Director for Financial Institutions Group for Europe, Middle East, and North Africa. "IFC's loan will boost lending to local companies at a time when businesses continue to face difficulties obtaining funding to improve energy efficiency and for renewable energy, key to sustainable development."
IFC's "Investment Potential in EMENA" report published in November 2013 said Turkey has a climate-smart business investment potential of over $89 billion. The investment potential in energy generation accounts for almost $42 billion, of which $22 billion is in renewables. The investment potential in industrial and consumer energy efficiency is estimated at over $4.5 and $30 billion respectively. IFC continues to work with partner financial institutions in Turkey, such as Yapi Kredi Leasing,to reach companies across the country and provide access to long-term funding for climate-smart investments.
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. Working with private enterprises in about 100 countries, we use our capital, expertise, and influence to help eliminate extreme poverty and boost shared prosperity. In FY14, we provided more than $22 billion in financing to improve lives in developing countries and tackle the most urgent challenges of development.
For more information, visit www.ifc.org
Yapi Kredi Leasing, established in 1987, is Turkey's leading player in the sector with the most assets and capital. Yapi Kredi Leasing serves corporate, commercial, and SME customers from various sectors through 12 branches located in different regions of Turkey and headquarters in Istanbul. Yapi Kredi Leasing is a board member of Financial Institutions Union.
For more information on Yapi Kredi Leasing, please visit: