Green for Growth Fund, Southeast Europe signs energy efficiency loan with Turkish Yapi Kredi Leasing
Frankfurt am Main, December 6, 2010 - The Green for Growth Fund, Southeast Europe (or "GGF") has signed a senior loan facility of EUR 20 million with the Turkish leasing company Yapi Kredi Finansal Kiralama A.O. (or "Yapi Kredi Leasing"). The loan will finance the expansion of Yapi Kredi Leasing's energy efficiency leasing program, helping Turkish small and medium-sized enterprises (SMEs) to reduce their energy costs and consumption as well as reduce CO2 emissions.
Yapi Kredi Leasing, an affiliate of Turkey's leading bank Yapi Kredi, is one of the biggest leading leasing companies in Turkey, with a market share of 21% (as of end of third quarter 2010).
The proceeds of the GGF loan will be used to finance the installation of facilities or equipment that reduce energy consumption.
The loan addresses the gap in Turkey between the strong economic and environmental potential of sustainable energy projects versus their limited commercial realization. One of the major causes of this gap is the lack of effective financing mechanisms, particularly those with medium to long-term maturities.
The loan is complemented by a technical assistance package, providing capacity building assistance on operational aspects of energy efficiency finance product implementation. This technical assistance support is funded by GGF's technical assistance arm, the Technical Assistance Facility.
"GGF is pleased to have found in Yapi Kredi Leasing a new, well-established partner to promote energy efficiency among SMEs in Turkey. This project will support Turkish companies helping them to reduce their energy consumption and cut costs", said Monika Beck, Chairwoman of the Board of Directors of GGF.
"As the leading leasing company in Turkey, Yapı Kredi Leasing has a strong reach into SMEs and is keenly interested in expanding its business in energy efficiency projects. With the support of GGF, Yapı Kredi Leasing will continue to help its SME customers to reduce their energy costs and consumption", said Nurgün Eyüboğlu, General Manager and Board Member of Yapı Kredi Leasing.
It is expected that through the loan to Yapi Kredi Leasing, GGF will finance approximately 200 energy efficiency leasing projects in Turkey, achieving a minimum of 20% energy savings. This would result into about 16,600 MWh/year in energy savings and 4,000 tons of CO2 savings per year.
The loan to Yapi Kredi Leasing is GGF's second loan to a Turkish financial institution to help develop Turkey's market for energy efficiency.
ABOUT THE GREEN FOR GROWTH FUND, SOUTHEAST EUROPE (GGF)
Initiated by the European Investment Bank and KfW (The German Development Bank), 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 UNSCR 1244/99), Montenegro, Serbia and Turkey. GGF provides refinancing to financial institutions for on-lending to enterprises and private households for financing energy efficiency projects. The Fund also makes direct investments in specialist energy service companies (ESCOs), energy service and supply companies and renewable energy projects. 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., Luxembourg, in consortium with the investment advisor Finance in Motion GmbH, Frankfurt/Main, Germany, and technical advisor MACS Management & Consulting Services GmbH, Frankfurt/Main, Germany.
ABOUT YAPI KREDI FINANSAL KIRALAMA A.O. (YKL)
Since its establishment in 1987, Yapı Kredi Finansal Kiralama A.O. has always been one of the leading leasing companies in the sector with diverse interests in numerous industries, including construction, textile, transportation, machinery and equipment, printing and metal industry, food, petroleum and chemistry. The Company operates within the Koç Financial Services Group, owned in equal shares by Koç Holding of Turkey and UniCredit (UCI) of Italy. Yapı Kredi Leasing is the only Turkish leasing company that is a member of the Multilease Association.
For additional information about Yapi Kredi Finansal Kiralama, please visit www.yapikredileasing.com.tr
Green for Growth Fund, Southeast Europe
Mr. Samir Djikić
Tel: +49 (0)69 9778 7650-26
Yapi Kredi Finansal Kiralama
Mr. Semsi Gurdenli
Tel : + 90 212 339 91 50