The FINANCIAL — IFC, a member of the World Bank Group, is providing a $97 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 $50 million of this loan from its own resources. The remaining $25 million is raised through the IFC-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. European Fund for Southeast Europe (EFSE) is the parallel lender in the project providing EUR20 million ($22 million) to support the bank’s financing of micro and small enterprises, according to IFC.
Meric Ulusahin, Board Member and General Manager of ABank, said, “Working with our strategic partner IFC, we will create innovative products and additional opportunities to develop sustainable energy investment across all industries in Turkey. The support extended to ABank by IFC and EFSE demonstrates the bank’s solid standing, and also confirms its increasing penetration in climate business and SME banking.”
Monika Beck, Chairperson of the Board of the EFSE, said: “ABank is a valuable partner of the EFSE and we are pleased to support ABank in its efforts to foster economic growth and job creation in Turkey”. ABank has been a partner institution already since 2011.
Energy efficiency and renewable energy has been a focus for IFC in Turkey. SMEs nearly make up 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. As of 2013, IFC has provided $564 million financing for such investments.
Ed Strawderman, IFC Associate Director for Financial Institutions Group for Europe, Middle East, and North Africa added that: “ABank is a key and long term partner for IFC in addressing the financing needs for climate related investments and SMEs in Turkey, which are crucial for economic development. The project also once again demonstrates the significant role IFC can play in helping mobilize other resources for long-term financing.”
IFC has been supporting private sector development in Turkey for the past 50 years. With a $4.3 billion outstanding portfolio, Turkey is the second largest country in IFC’s global portfolio. In line with the Turkey Country Partnership Strategy for fiscal years 2012-2015, IFC invested a record $2.8 billion in private sector projects in Turkey.
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