EBRD and Clean Technology Fund Partner with ING Türkiye to Boost Green Investments and Women-Led SMEs with €100 Million Financing Package

EBRD and Clean Technology Fund Partner with ING Türkiye to Boost Green Investments and Women-Led SMEs with €100 Million Financing Package

(IN BRIEF) The European Bank for Reconstruction and Development (EBRD) and the Clean Technology Fund (CTF) are joining forces to provide a €100 million financing package to ING Türkiye and ING Leasing in Türkiye, aiming to support green investments and empower women-led small and medium-sized enterprises (SMEs). ING Türkiye will utilize €80 million of the EBRD funding and US$ 5 million from the CTF to provide loans to sub-borrowers for green economy projects, including energy efficiency, renewable energy, and climate resilience initiatives under the EBRD’s Green Economy Financing Facility (GEFF). ING Türkiye will also allocate €15 million to support women-led SMEs as part of the EBRD’s Women in Business program. Additionally, ING Leasing, a subsidiary of ING Türkiye, will receive a €5 million loan from EBRD to align with GEFF criteria. This collaboration not only supports the green transition in Türkiye but also promotes inclusive sustainable growth by empowering women entrepreneurs. The partnership between EBRD, CTF, and ING Türkiye is a significant step toward a more environmentally friendly and inclusive future.

(PRESS RELEASE) LONDON, 23-Nov-2023 — /EuropaWire/ — The European Bank for Reconstruction and Development (EBRD) is providing a €100 million financing package, accompanied by US$ 5 million in funding from the Clean Technology Fund (CTF), to ING Türkiye and ING Leasing in Türkiye to boost financing opportunities for green investments and women-led small and medium-sized enterprises (SMEs).

ING Türkiye will use €80 million of the EBRD funding and US$ 5 million from the CTF for on-lending to sub-borrowers for green economy investments under the EBRD’s Green Economy Financing Facility (GEFF), which seeks to support private-sector contributions to the country’s green transition. These investments will target, among other things, energy efficiency, renewable energy resources and climate resilience measures. The CTF’s part of the package will support the enhancement of ING Türkiye’s corporate climate governance and on-lending practices.

ING Türkiye will use €15 million of the financing for on-lending to women-led SMEs under the Women in Business programme of EBRD, with a view to strengthening women’s participation in the real economy.

EBRD will extend a €5 million loan to ING Leasing, a fully owned subsidiary of ING Türkiye, also to be used in line with GEFF criteria.

The GEFF builds on the Türkiye Sustainable Energy Financing Facility, which has been operating since 2010. Participating banks and leasing companies use finance received through the facility to support individuals, businesses and vendors in making green investments. The EBRD has completed multiple 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 CTF, and grants from the CTF and the Türkiye-EBRD Cooperation Fund.

The EBRD’s expanded flagship Women in Business programme in Türkiye can provide up to €600 million to Turkish banks for on-lending to women-led SMEs to strengthen their role in the Turkish economy and promote inclusive sustainable growth. The European Union and Türkiye’s Credit Guarantee Fund, as well as the Ministry of Treasury and Finance, support the programme.

Oksana Yavorskaya, EBRD Deputy Head of Türkiye, welcomed the transaction, saying: “These transactions honour two of our key goals in the country: they support the green transition, as well as expanding opportunities for women towards a more inclusive SME ecosystem. We are pleased to have gained ING Türkiye and ING Leasing as partners in Türkiye and I am confident that we will move on to have a long-term partnership that helps the country and the region advance towards a greener, more resilient future.”

Ayşegül Akay, Wholesale Banking Executive Vice President at ING Türkiye said: “Sustainability is one of our key strategic pillars and we aim to be a banking leader in driving the transition.  We transfer ING’s global expertise to the country and continue to strengthen our position in striving to be the action leader in sustainable finance in the Turkish wholesale banking market. While supporting the green transition through different advisory and financing roles, we also focus on women empowerment in business. In this respect, we are delighted to have the opportunity to cooperate with EBRD and to be able to contribute to the expansion of our support towards mid-corporate and SME segments and promoting a greener, more inclusive future in Türkiye.”

This financing package marks EBRD’s first engagement with ING Türkiye, a member of Dutch multinational banking and financial services corporation ING Group.

To date, the EBRD has invested more than €19 billion in the Turkish economy, largely in the private sector.

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SOURCE: EBRD