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"The European Bank for Reconstruction and Development has extended its financing facility to Turkish banks to help support energy efficiency and renewable energy projects which will decrease carbon emissions and increase energy savings.
The Mid-size Sustainable Energy Financing Facility (MidSEFF) was launched in December 2010, and will now be extended so the bank can continue helping Turkey to reduce its dependence on fossil fuels through financing private-sector energy efficiency investments in sustainable energy projects. The EBRD will now offer a total of €225 million in loans to Turkish banks for lending to private sector borrowers undertaking mid-size renewable energy projects.
One of the first banks to join the scheme was Yapi Kredi Bank (YKB) which received a total of €75 million through the purchase of notes issued by YKB under its established Diversified Payments Rights securitisation programme.
The CEO of YKB feels it is important to support companies looking to mitigate the negative environmental effects of energy production, and pointed out that this bank has the highest DPR securitisation volume in 2011, and the fact that the last transaction has a 12 year repayment term underlines the confidence of international markets in Turkey's economic prospects.
Since MidSEFF was launched last year, it has provided around €300 million in financing to 4 leading banks in Turkey, and EBRD feels their joint corporation has brought tangible results in unlocking the potential for renewable energy sources in Turkey. Turkey currently has to import most of its energy supplies, and with its need for energy rapidly expanding due to its strong economy, it's essential that the country finds alternative renewable sources.
