GGF AND BURGAN LEASING SIGN EUR 5 MILLION SENIOR LOAN
- Funding will contribute to the modernization of machinery and equipment as well as to the expansion of solar plants in Turkey
- EE measures financed with the GGF loan are projected to result in annual primary energy savings of approx. 5,500 MWh and CO2 emission reductions of approx. 960 tons
Luxembourg and Istanbul, 20 October 2015 – The Green for Growth Fund, Southeast Europe (GGF) is providing a EUR 5 million senior loan to Istanbul-based Burgan Finansal Kiralama A.Ş. (Burgan Leasing) to support Turkish small and medium enterprises (SMEs) in upgrading to more energy-efficient (EE) equipment. In addition, Burgan Leasing plans to extend its portfolio by financing solar projects and thus contribute to strengthening the renewable energy (RE) sector. The upgrades ultimately financed by the credit facility are estimated to reduce primary energy consumption in Turkey by up to 5,500 MWh and CO2 emissions by 960 tons per year.
Burgan Leasing, active in a wide range of products and sectors, follows a niche player strategy. Their high flexibility and adaptability makes them an ideal partner for new EE and RE leasing.
To help Burgan Leasing achieve its objectives in this new field of activities, the GGF Technical Assistance Facility will also train Burgan Leasing staff on specific EE and RE technologies and project finance standards.
“Turkey benefits from a steadily growing economy. To meet its rising demands in energy without compromising natural resources, it is paramount that the country exploit its vast potential for reducing consumption through more energy efficient machinery and equipment as well as for tapping renewable resources, especially solar energy. These two efforts have to be carried out in unison to prepare Turkey for the future. The GGF is delighted to work with Burgan Leasing and support them in their aim to grow their portfolio with the financing of modern solar projects and upgrading equipment,” said Christopher Knowles, Chairman of the Green for Growth Fund, Southeast Europe.
“There is a definite demand for both renewable energy and energy efficiency loans from Turkish Investors and we are enthusiastic about providing these alternatives to them. Maintaining the growth rate of our portfolio while satisfying the need for “green financing” is one of our corporate priorities and goals. Therefore, we are delighted to work with the GGF and with this agreement we have taken the very first steps of a long term relationship,” said Cüneyt Akpınar, CEO of Burgan Leasing.
ABOUT THE GREEN FOR GROWTH FUND, SOUTHEAST EUROPE (GGF)
The Green for Growth Fund, Southeast Europe (GGF) is dedicated to enhancing energy efficiency and fostering the use of renewable energy sources in Southeast Europe, including Albania, Bosnia and Herzegovina, Croatia, FYR Macedonia, Kosovo*, Montenegro, Serbia, and Turkey as well as in the nearby European Eastern Neighbourhood region comprised of Armenia, Azerbaijan, Georgia, Moldova and Ukraine. The GGF provides refinancing to financial institutions for on-lending to enterprises and private households seeking to finance energy efficiency projects. The GGF also invests directly in small to medium-scale renewable energy projects. To maximize the impact of the Fund’s investment activities, the GGF’s Technical Assistance Facility offers capacity building support to local financial institutions and partners. The GGF was initiated as a public-private partnership in December 2009 by the KfW Development Bank (KfW) and the European Investment Bank (EIB) with the financial support of the European Commission, the German Federal Ministry for Economic Cooperation and Development (BMZ), and the European Bank for Reconstruction and Development (EBRD). Its growing base of committed investors comprises donor agencies, international financial institutions and institutional private investors, such as the International Finance Corporation (IFC), the Netherlands Development Finance Company (FMO) and the Development Bank of Austria (OeEB). The GGF, registered under Luxembourg law as a SICAV (variable capital investment company), is privately managed by Oppenheim Asset Management Services S.à r.l., Luxembourg, in concert with the fund advisor, Finance in Motion GmbH, Frankfurt/Main, Germany, and the technical advisor, MACS Management & Consulting Services GmbH, Frankfurt/Main, Germany.
* This designation is without prejudice to positions on status, and is in line with UNSC 1244 and the ICJ Opinion on the Kosovo Declaration of independence.
About Burgan Leasing
Burgan Leasing began operations in 1989 within the structure of Tekfen Investment and Finance Bank. Burgan Leasing have merged their activities with Ekspres Leasing (founded in 1994) in 2001. Main shareholding and control rights of Burgan Leasing is owned by Burgan Bank Turkey which have the 99,99% of shares of the company. Burgan Bank Kuwait, controlled by KIPCO, has 99,26% of shares of Burgan Bank Turkey. The primary area of activity of Burgan Leasing is providing leasing solutions to SMEs that are active in special areas that require knowledge and specialization. Burgan Leasing is an investment grade company. Rating scores of the company (dated 07.11.14) are A+ for long term, A1 for short term. For more information, please visit www.burganleasing.com.tr
Media contact GGF
Phone: +49 (0)69/271 035-320
Media contact Burgan Leasing
Phone: +90 (212) 371 4032