GGF, GARANTI LEASING FUND CUTS IN ENERGY USE, EMISSIONS AT SMALL BUSINESSES IN TURKEY
- The GGF’s EUR 15 million senior loan to the leasing company will finance investments in energy efficient machinery and solar equipment
- EE measures financed with the GGF loan are expected to achieve annual primary energy savings of approx. 61,000 MWh and CO2 emission reductions of approx. 14,000 tons
Luxembourg and Istanbul, 11 January 2017 – The Green for Growth Fund (GGF) has agreed to lend EUR 15 million to Turkey’s Garanti Finansal Kiralama A.Ş. (Garanti Leasing) to foster investments in energy efficiency and renewable energy equipment by Turkish micro, small, and medium enterprises (MSMEs).
Leases for replacing obsolete and energy-inefficient equipment account for 30% of the lease portfolio at Garanti Leasing and are already resulting in substantial energy savings. The GGF loan is aimed at extending this portfolio to non-standard measures such as the leasing of mid-sized solar power plants and energy efficient equipment for the construction, textile and manufacturing sectors. Garanti Leasing is an affiliate of Garanti Bank, Turkey’s third-largest bank, and provides leasing services to some 10,000 customers from a wide-variety of business sectors.
GGF Chairman Christopher Knowles said: “Having Garanti Leasing as a partner in Turkey is an important step for increasing the use of energy efficient equipment by the country’s MSMEs. Given the company’s strong market position and its extensive branch network, we are pleased to welcome Garanti Leasing as our latest partner institution.”
Garanti Leasing General Manager Unal Gokmen said: “We, as Garanti Leasing, provide financial support for investors in solar, wind and biomass energy systems to increase the use of systems that are renewable, unlimited and totally environment-friendly. In light of the convenient conditions in our country, and the government incentives and facilities, we believe the use of renewable energy systems will increase even more in the future. Garanti Leasing values constant and sustainable contributions to the environment, and in parallel with this principle, we support investments in this particular area.”
ABOUT THE GGF
The Green for Growth Fund invests in measures designed to cut energy use and CO2 emissions by a minimum of 20% in 19 markets across Southeast Europe, the Caucasus, Ukraine, Moldova, the Middle East and North Africa. The fund provides financing to local partners that on-lend to enterprises and private households, and it invests directly, primarily through the contribution of senior debt, in renewable energy projects. The GGF’s Technical Assistance Facility maximizes the fund’s investment impact through support for capacity building at local financial institutions and partners.
The GGF was initiated as a public-private partnership in December 2009 by Germany’s KfW Development Bank and the European Investment Bank, with financial support from the European Commission, the German Federal Ministry for Economic Cooperation and Development, the European Bank for Reconstruction and Development, and the Austrian development bank OeEB. The fund’s growing investor base comprises donor agencies, international financial institutions and institutional private investors, including the International Finance Corporation, the Dutch development bank FMO, the German ethical bank GLS, and Church of Sweden. The GGF is privately managed by Oppenheim Asset Management Services S.à r.l., Luxembourg and advised by Finance in Motion GmbH. MACS Management & Consulting Services GmbH, Frankfurt am Main acts as the technical advisor.
ABOUT GARANTI LEASING
Founded in 1990, Garanti Leasing (Garanti Finansal Kiralama AŞ) has been the pioneer of its sector through its customer-oriented and innovative approach. As one of the biggest leasing companies in Turkey, Garanti Leasing, with its strategy to diversify its portfolio and focus on SMEs, is the first Turkish leasing company rated by two agencies, namely Fitch Ratings and Standard and Poor’s, and it has an excellent reputation.
Media contact GGF
Phone: +49 (0)69/271 035-307
Media contact Garanti Leasing
Treasury & Financial Institutions Department
Phone: +90 212 365 48 39