In its first transaction with Turkey’s Is Leasing, the European Bank for Reconstruction and Development (EBRD) has provided a €40mn loan for on-lending to companies to finance investments in resource efficiency and small-scale renewable energy projects.

Greening the Turkish economy is one of the EBRD’s main stated goals in the country. The bank said it was committed to providing funds and policy support that will help Turkey cope with the coronavirus crisis and use the current situation to “tilt to green” decisively.

The loan has been extended under the Turkey Sustainable Energy Financing Facility backed by the European Union and funds from Turkey’s treasury and finance ministry. Launched in 2010, the credit line has provided €666 million to finance more than 1,800 projects, helping to install a total of 582 MW of renewable energy capacity in the country.

The loan will also help strengthen the financial sector in the country and contribute to a faster increase in the use of leasing, a viable alternative to debt financing, the EBRD said. 

To date the development bank has invested almost €13bn in Turkey through 334 projects, with 95% of this in the private sector. In 2020, the EBRD stepped up its financing in the country to €1.7bn from €1bn in 35 projects in 2019. 

Is Leasing is the second-largest leasing company in terms of leasing receivables in Turkey and is a subsidiary of IsBank, Turkey’s largest private lender.