European Bank for Reconstruction and Development (EBRD) granted $85 million loan to Industry Development Bank of Turkey (TSKB) to finance private middle sized companies investing in renewable energy and resource efficiency projects in Turkey, the bank's statement said on late Wednesday.
According to the statement, the financing will contribute towards a green economy by supporting solar, hydropower, wind, geothermal, waste-to-energy and energy efficiency projects as well as waste administration.
'Part of the EBRD’s strategy in Turkey is to support the country in addressing the challenges of a growing demand for electricity and diversifying away from imported fossil fuels. The use of renewable sources of energy will also help combat climate change,' the statement read.
'By providing financing to mid-cap companies to undertake green investments, the EBRD is contributing to their sustainable development and to the improvement of the overall competitiveness of the Turkish economy,' Arvid Tuerkner, EBRD Managing Director for Turkey, quoted in the statement.
The loan came under the EBRD’s €1.6 billion Mid-size Sustainable Energy Financing Facility (MidSEFF) for Turkey. The loan will finance mid-cap companies -- companies with a capitalization in the middle range of stocks in the market.
Nearly 60 projects have been financed under this framework through seven Turkish banks, installing over 1 gigawatts of renewable energy capacity by private commercial and industrial companies to date, the EBRD said in the statement.
“Sustainable investments have reached approximately 60 percent in our loan portfolio. In this context, we are very pleased to provide additional support to Turkey’s transition to a low carbon economy through our cooperation with EBRD,' Suat Ince, CEO of TSKB, quoted in the statement.
He said this new financing facility focusing on renewable energy and resource efficiency, which are the top priority investment areas of Turkey, also reaffirms the confidence in the general Turkish economy.
Turkey is currently trying to increase the share of renewable energy resources in its energy mix to be able to reduce imports and imports-induced current deficit.
EBRD, almost half of its Turkish projects in sustainable energy, has invested over €9.5 billion in various sectors of the country’s economy, with almost all investments in the private sector to date. Its investment volume in 2017 is expected to exceed €1.5 billion.
By Nuran Erkul Kaya
Anadolu Agency
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