Financing to Yapı Kredi to be on-lent to companies for green investment

Funds to be extended under the EBRD’s Green Economy Financing Facility Türkiye Project to include technical assistance on climate governance The European Bank for Reconstruction and Development (EBRD) is providing US$ 52.8 million in new financing to Yapı Kredi Bankasi in Türkiye to increase on-lending to businesses that want to invest in green projects. The financing will be lent on to companies to invest in green technologies, including energy efficiency, renewable energy and climate resilience measures. The money is being made available through YapıKredi’s Diversified Payment Rights (DPR) programme, an established market instrument used by Turkish banks to raise long-term funding. The financing comes under the EBRD’s Green Economy Financing Facility (GEFF) Türkiye, which aims to support the country’s private sector in accelerating the economy’s green transition. The transaction will be the first such GEFF transaction with Yapı Kredi. As part of the package, Yapı Kredi will work with borrowers to mainstream corporate climate governance principles and gender-responsive on-lending. The GEFF builds on the Turkey Sustainable Energy Financing Facility (TurSEFF), which has been running since 2010. Participating banks and leasing companies use finance received through the facility to support individuals, businesses and vendors in making green investments. Under the GEFF, financial institutions will also be able to benefit from a technical assistance programme on corporate climate governance (CCG). This is the first time such a programme has been incorporated into a GEFF. The EBRD has completed seven transactions under the GEFF Türkiye since its launch in November 2021. The facility consists of €500 million in funding from the EBRD, concessional financing from the Clean Technology Fund (CTF) and grants from the CTF and the Türkiye-EBRD Cooperation Fund. Yapı Kredi will receive a technical assistance package to support its CCG and on-lending practices. CCG technical assistance will focus on practices and recommendations developed by the Task Force on Climate-related Financial Disclosures. To date, the EBRD has invested more than €18.5 billion in the Turkish economy, largely in the private sector.