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EBRD investments in Turkey hit record high in 2021


Written by Eric Apim on Tuesday, February 22nd 2022 à 17:15 | Read 320 times



Turkey has benefited from $2 billion of EBRD investments in 2021 (photo: F.Dubessy)
Turkey has benefited from $2 billion of EBRD investments in 2021 (photo: F.Dubessy)
TURKEY. The European Bank for Reconstruction and Development (EBRD) has broken its record for investments in Turkey in 2021 with a total of €2 billion. More than 85% of this sum was channelled to the private sector and the €2bn was used to mobilise €572m from other sources. 55% of the total envelope went to projects promoting sustainable development.

During the year, the bank granted a €650m loan to Ford Otosan (a joint venture between the American manufacturer and Turkish Koc Holding) to support the production of 100% electric and plug-in hybrid commercial vehicles. It also invested in Aydem Renewables' green bond in August 2021 ($1.6bn raised in total by 131 investors including $75m by the EBRD).  Aydem Renewables operates twenty hydroelectric plants, three wind farms, one geothermal plant and one biogas plant in four Turkish regions with an installed capacity of 1,020 MW.

Enerjisa Enerji, the main local electricity company, has benefited from a comprehensive five-year $100m EBRD financing plan to introduce smart metering and smart grids, digitise its network, improve the reliability of electricity supply, integrate renewable energy and environmental, health and safety measures.

Half of the supported projects concerned with gender equality

In parallel, nine Turkish banks and leasing companies have received a credit line for a total of €826m with 35% of the envelope dedicated to green projects. In addition to these funds, the EBRD has supported around one hundred SMEs with financing or advice and funding. In particular through risk-sharing partnerships with local lenders TSKB, Garanti BBVA Leasing and Akbank and to address the establishment of sustainable and resilient supply chains, the acceleration of digitisation and support for the growth of high-potential start-ups and women-led businesses. In this area, the bank has provided thousands of Turkish women-led businesses with €600m of earmarked loans (of which €115m has already been provided through Denizbank, Akbank and Yapi Kredi) under its Women in Business programme.
Twenty of the EBRD's forty-two projects in Turkey included a gender equality component.

In 2021, the EBRD was also very active in the field of transport. It financed the Ispartakule-Verkezkoy railway line for €150m and the extension of the Izmir metro line to the urban district of Buca (€125m) as well as the acquisition of 100 modern and cleaner buses in Mersin for €22m consisting of a €15m ten-year loan and a €7m grant.

"In these difficult times, our aim is to preserve the gains in economic development and create opportunities for a green and inclusive economic recovery of Turkey after the pandemic", comments Arvid Tuerkner. EBRD Director General for Turkey, he believes that Ankara's ratification of the Paris Agreement will pave the way for more green investments in the country.

15.4 billion invested by the EBRD in Turkey

The EBRD seems to be following the same trend with two announcements on Monday 21 February 2022 alone.
The bank opened a €25m credit line to BNP Paribas Finansal Kiralama A.S.. This leasing company will thus be able to finance the investment of local companies in more recent and more energy efficient equipment. The transaction is part of the third phase of the Sustainable Energy Financing Facility in Turkey (TurSEFF III), supported by the European Union and the Ministry of Treasury and Finance of the Republic of Turkey. Launched in 2010, TurSEFF III has provided €719m in financing to commercial banks and leasing companies to on-lend to over 2,200 small private sector projects for sustainable energy investments.

The second signature was with Dunya Varlik Yonetim A.S., the main company managing non-performing loans, to deal with the increase in these NPLs in its banking sector due to the Covid-19 pandemic. With a loan of 100 million Turkish lira, Dunya Varlik (12% owned by the EBRD) will be able to purchase new distressed portfolios from local banks and other financial institutions.

Since the beginning of its operations in Turkey in 2009, the EBRD has invested €15.4 billion in 367 projects, the vast majority of which are in the private sector.



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