The European Bank for Reconstruction and Development (EBRD), a UK-based development finance institution established in 1991, has directed the equivalent of USD 80 million in Turkish lira to Vakiflar Bankasi (Vakifbank), a state-controlled Turkish bank, to be on-lent to small and medium-sized enterprises (SMEs) in Turkey to pursue small-scale renewable energy projects and other investments that reduce their greenhouse emissions. [1]
This funding is part of EBRD’s Turkish Sustainable Energy Finance Facility (TurSEFF), which was launched in July 2010 with the equivalent of USD 284 million and is aimed at improving the country’s long-term energy efficiency [2]. TURSEFF was extended in early 2013 with the equivalent of USD 200 million in recognition of the continued demand from SMEs for funds to invest in energy efficiency. TurSEFF reportedly has saved the equivalent of USD 147 million in oil imports and 686,000 tons of carbon dioxide emissions since 2010.
Established in 1954, Vakifbank offers commercial, small-scale enterprise, retail and private banking [3]. As of 2012, Vakifbank reported total assets of TRL 104.6 billion (USD 56.5 billion), return on assets (ROA) of 1.6 percent and return on equity (ROE) of 14.6 percent. In 2011, EBRD disbursed a total of EUR 6.7 billion (USD 8.3 billion).
By Meghan Gillis, Research Associate
About European Bank for Reconstruction and Development
The European Bank for Reconstruction and Development (EBRD) is a multilateral institution headquartered in London. The bank began operations in 1991 upon the agreement of 40 countries and is now owned by 61 countries as well as the European Investment Bank and the European Union. It aims to finance operations that are both commercially viable and assist development in 29 countries in Eastern Europe, Central Asia and North Africa. It does this by providing loans, debt securities, equity investments, guarantees and technical assistance to micro- and small businesses via commercial banks and non-bank microfinance institutions (MFIs).
About Vakiflar Bankasi
Established in 1954, Vakifbank offers commercial, small-scale enterprise, retail and private banking [3]. As of 2012, Vakifbank reported total assets of TRL 104.6 billion (USD 56.5 billion), return on assets (ROA) of 1.6 percent and return on equity (ROE) of 14.6 percent.
Sources and Additional Resources
[1] European Bank for Reconstruction and Development Story: “New EBRD Financing for Improved Business Energy Efficiency in Turkey,” http://www.ebrd.com/pages/news/press/2013/130510e.shtml
[2] Turseff: http://www.turseff.org/en/truseff-credits.html
[3] Vakifbank: “2012 Earnings Presentation,” http://www.vakifbank.com.tr/documents/inv_pres/EP_BRSA_2012.pdf
MicroCapital story, August 6, 2012, “MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) Extends Credit Line to Turkey’s Vakiflar Bankasi (Vakifbank) Worth $25m,” https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-extends-credit-line-to-turkeys-vakiflar-bankasi-vakifbank-worth-25m/
MicroCapital story, November 14, 2012, “MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) Lends $70m to Garanti Bank of Turkey, Hipotekarna Banka of Montenegro, Bai Tushum of Kyrgyz Republic,” https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-lends-70m-to-garanti-bank-of-turkey-hipotekarna-banka-of-montenegro-bai-tushum-of-kyrgyz-republic-2/
MicroCapital story, May 13, 2013, “MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD), European Union Commit $25m to Kyrgyz Sustainable Energy Financing Facility (KyrSEFF),” https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-european-union-commit-25m-to-kyrgyz-sustainable-energy-financing-facility-kyrseff
MicroCapital story, March 8, 2013, “MICROCAPITAL BRIEF: EBRD Plans $200m to Expand Turkish Sustainable Energy Finance Facility (TurSEFF) for Small and Medium-sized Enterprises, Private Households,” https://www.microcapital.org/microcapital-brief-ebrd-plans-200m-to-expand-turkish-sustainable-energy-finance-facility-turseff-for-small-and-medium-sized-enterprises-private-households/
MicroCapital story, February 25, 2013, “MICROCAPITAL BRIEF: Minsk Transit Bank, Belgazprombank of Belarus Access $50m Facility for SME Energy Efficiency from European Bank for Reconstruction and Development,” https://www.microcapital.org/microcapital-brief-minsk-transit-bank-belgazprombank-of-belarus-access-50m-facility-for-sme-energy-efficiency-from-european-bank-for-reconstruction-and-development-erbd/
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