The European Investment Bank (EIB) has signed a EUR 75 million agreement with Turkiye Vakiflar Bankasi A.S for financing climate action related investments carried out by small businesses and midcap companies throughout Turkey.
The funding is in the form of a framework loan jointly provided with the European Bank for Reconstruction and Development (EBRD). It is provided through an innovative financial scheme based on Diversified Payment Rights securitisation. It comes as the third operation signed within the framework of the Mid-size Sustainable Energy Financing Facility (“MidSEFF”), which has been developed jointly by the EIB and the EBRD. The facility includes a Technical Assistance component funded by the European Commission from IPA funds. The previous operations already signed under this facility were contracted with Denizbank and Garanti Bank.
This loan will facilitate the support of a series of small and medium sized private sector investments in renewable energy, industrial energy efficiency and waste-to-energy projects in Turkey, which contribute to the country’s security of energy supply. It will also contribute to the European climate action policies, thus falling within an EIB priority objective. It demonstrates the EIB’s commitment to smart growth in Turkey, as it contributes to Turkey’s target to reach a level of 30% energy generation from renewables by 2023. The funding promotes FDI and innovative finance structures in the energy sector in Turkey. It is the result of the fruitful cooperation between the EIB and the EBRD.