Green for Growth Fund, Southeast Europe makes first investment in Turkey
Partnership established with Şekerbank
Ohrid, FYR Macedonia, June 9, 2010 - The Green for Growth Fund, Southeast Europe (GGF, formerly known as South East Europe Energy Efficiency Fund) has signed a senior loan facility of EUR 25 million with the Turkish commercial bank Şekerbank. The loan will enable Şekerbank to expand its energy efficiency financing program, helping Turkish private households, homeowners, small and medium-sized enterprises to reduce their energy costs and consumption and reduce CO2 emissions.
Şekerbank will use the proceeds of the GGF loan to finance such projects as: improvements to renovating and insulating buildings, improvements to heating and lighting systems, conversion to natural gas, and small scale use of renewable energy.
Şekerbank is one of Turkey's leading banks in the small business segment. It is among Turkey's top 10 private banks in terms of total assets, and one of the country's best established banks in rural areas."Our partnership with Şekerbank will bring economic and environmental benefits to private households and small and medium-sized businesses in Turkey. It also underscores the role the private sector can play in improving competitiveness and alleviating global warming at the same time," said Monika Beck, Chairwoman of the Board of Directors of GGF.
Şekerbank pioneered energy efficiency finance in Turkey. This cooperation with GGF will support our unique and successful energy efficiency loan product called "EkoKredi" with an already outstanding portfolio of EUR 80 million. "This innovative product was launched in May 2009 and later won the "Product of the Year" award in the retail category due to its financial success with its favorable terms as well as the environmental awareness it created across the board in individuals, SMEs and corporates." said Mr. Zeki Önder, Executive Vice President of Şekerbank.
It is expected that through this loan GGF will finance about 2,500 projects in Turkey. This would result in substantial energy and CO2 savings.
This is the first loan GGF has made since its inception in December 2009. By 2014, the Fund expects to invest nearly EUR 400 million in financial institutions and renewable energy projects in its target region. Energy efficiency and renewable energy finance in the region is in its early stages and there is significant opportunity for growth in this underserved sector.
ABOUT THE GREEN FOR GROWTH FUND, SOUTHEAST EUROPE
Initiated by the European Investment Bank and KfW Entwicklungsbank, the Green for Growth Fund, Southeast Europe (GGF, formerly Southeast Europe Energy Efficiency Fund) is dedicated to enhance energy efficiency and foster renewable energies in Southeast Europe, including Albania, Bosnia and Herzegovina, Croatia, FYR Macedonia, Kosovo (under United Nations Security Council Resolution UNSCR 1244/99), Montenegro, Serbia and Turkey. GGF provides refinancing to financial institutions for on-lending to small and medium-sized enterprises and private households for financing energy efficiency projects. The Fund can also make direct investments in specialist energy service companies (ESCOs), energy efficiency service and supply companies and renewable energy projects and public entities. The activities of GGF are supported by a Technical Assistance Facility. The Fund is a public-private partnership. Its investor base comprises donor agencies, international financial institutions and institutional private investors. The Fund is registered under Luxembourg law as a Variable Capital Investment Company (SICAV). GGF is privately managed by Oppenheim Asset Management Services S.à r.l., Luxembourgin consortium with theinvestment advisor, Finance in Motion GmbH, Frankfurt/Main, Germany, and technical advisor, MACS Management & Consulting Services GmbH, Frankfurt/Main, Germany.
Şekerbank, founded in 1953 by the sugar beet growers' cooperatives, is one of the most established banking brands in Turkey. With its nationwide branch network, Şekerbank has a strong penetration across the country. Throughout its 57 years of history, Şekerbank has been one of the leading banks serving SMEs and small businesses. In line with its strategy to position itself as the primary partner for local business through its "community banking" approach, the Bank established strong relations with international financial institutions (IFIs) for long term funding. Şekerbank provides regionally focused services to its clients through its 11 regional offices and 260 branches. For further information, please visit www.sekerbank.com.tr.
Green for Growth Fund, Southeast Europe (GGF)
Mr. Samir Djikić, Manager Communications
Tel: +49 (0)69 97 78 76 50-26
Ms. Aybala Şimşek, Head of Corporate Communications