GGF AND ODEABANK TO EXPAND RENEWABLE ENERGY LENDING IN TURKEY
- GGF to provide USD 11 million credit line to Odeabank
- Odeabank to expand lending for wind and geothermal RE projects
- Investments financed by loan to result in estimated primary energy savings of up to 12,100 MWh and emission reductions of 2,640 metric tons of CO2 annually
Luxembourg and Istanbul, 17 December 2015 - The Green for Growth Fund, Southeast Europe (GGF, the Fund) is providing a USD 11 million credit line to Istanbul-based Odeabank (the Bank). Odeabank plans to finance mainly renewable energy (RE) projects in the wind, geothermal and, increasingly, the photovoltaic sectors. While Turkey’s current electricity mix still relies heavily on fossil fuels (coal and gas fired plants account for more than two thirds of inland power generation), the country holds vast resources in almost all types of renewable energy. Projects funded by the financing facility are estimated to reduce primary energy consumption by up to 12,100 MWh and CO2 emissions by 2,640 metric tons per year.
Odeabank is a subsidiary of Lebanon-based Bank Audi, a leading banking group in the Middle East and North Africa region. Though relatively small, this universal bank with 54 branches throughout Turkey can draw on significant experience in RE project finance, having established an outstanding track record with recent projects in the RE sector.
In order to further optimize Odeabank’s Environmental & Social (E & S) expertise, the GGF Technical Assistance Facility will contribute to Odeabank’s internal training program with additional seminars for E&S officers. In addition, the GGF Technical Assistance Facility will provide consultancy services for the bank’s RE projects.
“Due to its 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. Odeabank’s expertise in RE lending and project finance ensures that many entrepreneurs can access financing to increase their competitiveness while saving energy and preserving natural resources,” said Christopher Knowles, Chairman of the Green for Growth Fund, Southeast Europe.
Alpaslan Yurdagül, Assistant General Manager of Odeabank Financial Institutions and Investment Banking, said, "The 11-million-dollar contract Odeabank has signed with the Green for Growth Fund (GGF) to finance renewable energy projects substantially boosts our ability to drive investments in this field. We are happy to contribute towards increasing the share of renewable energy in Turkey’s total energy consumption by creating financing opportunities, and to assist the Turkish economy in continuing on it sustainable growth path."
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. For more information: www.ggf.lu
* 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.
Established as a 100-percent subsidiary of Bank Audi in Turkey, Odeabank started its activities with a paid-up capital of 300 million USD on October 2, 2012. Operating with 54 branches in 14 cities and more than 1500 employees, Odeabank ranks 10th in terms of asset size and 8th place in terms of deposit size among all private deposit banks in Turkey. As of the end of the third quarter of 2015, Odeabank holds assets totaling 32.8 billion TRY, an aggregate loan portfolio of 21.9 billion TRY and deposits totaling 26.2 billion TRY.
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