Istanbul, Türkiye, October 6, 2022—IFC is providing a groundbreaking blue and green loan to, Yapı Kredi Leasing, a leading Turkish leasing company that will help increase access to climate finance for small businesses in areas such as climate mitigation and adaptation financing. The financing marks IFC's first blue loan in Türkiye and is fully aligned with the Paris Agreement objectives.
The $120 million investment from IFC will be supported by co-financing from institutional investors through IFC's Managed Co-Lending Portfolio Program (MCPP), to boost access to blue and green leasing loans for small and medium enterprises (SMEs) and promote sustainable business activities.
Yapı Kredi Leasing will use half of the proceeds to finance blue projects, including investments in clean water, water efficiency, and wastewater treatment, as well as marine and ocean economy activities and water pollution prevention. The other half will go towards green projects, such as energy-efficient equipment, e-vehicles & charging infrastructure, energy efficiency upgrades in buildings and facilities, and renewable energy solutions.
"We are proud to have signed the first blue loan agreement with IFC in Turkey, which is in line with our country's Paris Agreement target" said Fatih Torun, General Manager of Yapı Kredi Leasing. "With this resource, we want to help our country reach its climate targets by supporting SMEs in their transition to green energy."
IFC's investment aims to help Türkiye address its substantial climate financing gap and meet ambitious climate goals. Energy efficiency also remains critical for the country, which is highly dependent on energy imports to sustain economic growth. Türkiye ratified the Paris Agreement in October 2021 and committed to net zero emissions by 2053.
"Supporting climate finance, and especially mitigation and adaptation financing, is a priority for IFC, and we are glad to build on our previous climate-related projects with Yapı Kredi Leasing, which has vast experience in this area," said Arnaud Dupoizat, IFC Country Manager for Türkiye. "The investment is in line with the World Bank Group's Climate Change Action Plan and will also help Türkiye meet its climate target goals."
IFC has supported private sector development in Türkiye for more than 50 years, with investments of nearly $10 billion in the last decade alone. Türkiye represents IFC's third-largest country exposure globally, with a committed portfolio of close to $4 billion as of June 2022.
Blue finance is an emerging area in climate finance with increasing interest from investors, financial institutions, and issuers globally. Since 2020, IFC has provided more than $700 million dollars in blue loans and bonds to private sector financial institutions and corporates, for example to, boost recycling and reduce marine plastic pollution in Africa and Asia.
About Yapı Kredi Leasing
Yapı Kredi Leasing was founded with the aim of engaging in national and international financial leasing. Since it was founded, it has been the leading company that makes the most transactions in the sector with its customer-oriented and innovative approach. Yapı Kredi Leasing continues to provide non-stop service within the 13 regions it operates in throughout Türkiye, Yapı Kredi branches, its website, and mobile application. With its workforce of experts and diversity of funding infrastructure, Yapı Kredi Leasing offers consultancy, total solutions, and financing opportunities to its customers and business partners.
About IFC
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2022, IFC committed a record $32.8 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org.
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