GGF AND FINANS LEASING TO EXPAND GREEN LENDING TO SMALL AND MEDIUM BUSINESSES IN TURKEY
- GGF to provide EUR 15 million credit line to Finans Leasing
- Finans Leasing to expand lending to SMEs in sectors such as textile, manufacturing, construction, health and printing
- EE investments to result in estimated primary energy savings of up to 16,500 MWh and emission reductions of 3,600 metric tons of CO2 annually
Luxembourg and Istanbul, 20 October 2015 - The Green for Growth Fund, Southeast Europe (GGF) is providing a EUR 15 million credit line to Istanbul-based Finans Leasing to support Turkish small and medium enterprises (SMEs) in upgrading to more energy-efficient equipment. In addition, Finans Leasing plans to finance renewable energy (RE) leases, particularly in the photovoltaics sector. The financing facility is estimated to reduce primary energy consumption by up to 16,500 MWh and CO2 emissions by 3,600 metric tons per year.
Finans Leasing is one of the largest leasing companies in Turkey and provides leasing services to micro and SME clients (48% of Finans Leasing’s total portfolio). Experienced in EE and RE leasing, the institution plans to further expand its established EE leasing to sectors such as textiles, manufacturing, construction, health and printing which mainly operate with high-tech equipment. Finans Leasing’s customer base currently comprises close to 5,000 Turkish companies.
“Due to its growing economy and vast potential for optimizing energy production and consumption, Turkey is one of the countries in which the promotion of EE and RE measures is having a substantial impact. Both Finans Leasing’s expertise in RE and EE lending and their excellent outreach to the Fund’s target group ensure that many entrepreneurs can access financing that increases competitiveness while saving energy and preserving natural resources,” said Christopher Knowles, Chairman of the Green for Growth Fund, Southeast Europe.
“This is our first cooperation with the GGF and it puts us in a unique position to tap into the vast potential for EE & RE investments by SMEs. As green energy gains momentum in Turkey, the GGF credit facility enables us to propose attractive loan products for the SMEs that form the backbone of our dynamic economy. We trust this is the beginning of a long and mutually fruitful relationship with the GGF,” said Murat Alacakaptan, General Manager of Finans 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 FINANS LEASING
Established in 1990 and headquartered in Istanbul, Finans Leasing is Turkey’s fifth leasing company, and one of the leaders in the leasing sector in terms of high profitability, high growth rates and efficiency. For more information, please visit www.finansleasing.com.tr
Media contact – GGF
Phone: +49 (0)69/271 035-320
Media contact – Finans Leasing
Phone: + 90 212 349 11 14