PROPARCO supports energy efficiency in Turkey
Istanbul, 11 July 2012. PROPARCO announced today the signing of a 7-year credit line of €20 m with the Turkish leasing company AKLease, an Akbank subsidiary, to finance clean energy, and energy efficiency projects. The signing ceremony was held with the attendance of Tuncer Mutlucan, General Manager of AKLease and Laetitia Dufay, Deputy Resident Manager of AFD in Istanbul.
For over twenty years, Turkey has been experiencing record growth in its energy demand with an annual rate close to 8% between 1992 and 2010. This growth, combined with the liberalization of the electricity market in the 1990s, has contributed to the rapid expansion of the energy sector. Forecasts will remain high for 2012-2023, and additional investments will be required to meet energy needs and reduce Turkey’s energy dependence.
AKLease - the leading leasing company of Turkey - operates all over the country through its eight regional offices and also represented through 935 branches of Akbank. AKLease is the pioneer in energy sector and financed a 45 MW wind farm in Susurluk, the first large scale renewable energy leasing ever done in Turkey. AKLease is also a member of the Turkish Wind Energy Association (TUREB).
This operation will contribute to the efforts, made in Turkey, to improve energy efficiency and to further diversify the energy mix. “Access to long-term financing is crucial to developing clean energy and renewable energy projects. PROPARCO is proud to support a dynamic player such as AKLease in increasing available resources for the sector” explains Marie-Hélène Loison, Deputy Chief Executive Office of PROPARCO.
“We are indeed very pleased to partner with PROPARCO on this long term facility which will be utilized to support the renewable energy and energy efficiency projects. AKLease will continue to provide investors with long term competitive and innovative financing solutions for their energy projects in line with company's social and environmental responsibility. We thank to Laetitia Dufay and all PROPARCO team for their kind cooperation” said Tuncer Mutlucan, General Manager of AKLease.
This financing strengthens the partnership between PROPARCO and AKLease which began in 2007. A €15m credit facility was granted to AKLease to support the growth of its leasing activity with local SMEs.
AKLEASE. Established as BNP-AK-Dresdner Leasing in 1988 and currently a 99.99% owned subsidiary of Akbank, AKLease has been providing leasing solutions mainly to Akbank customer base with a strategic focus in energy, air transportation, health, and real estate. AKLease is one of the Turkey’s largest leasing firms with 11% market share, 1.76 billion TL lease receivables, and 2.1 billion TL total asset value. Focused on corporate and upper commercial segments but also supporting SMEs, AKLease has established very good relations with ECAs and multilaterals to create customer tailored products. In July 2012, Fitch confirmed AKLease’s long term Turkish lira and foreign currency ratings as BBB-,an investment grade rating; and its long term national rating as AAA, the highest rating possible to a Turkish financial institution, assuring the strong position of the company. AKLease is the pioneer in energy sector and financed a 45 MW wind farm in Susurluk, the first large scale renewable energy leasing ever done in Turkey. AKLease also provides financing to other renewable energy projects including but not limited to geothermal, biomass, solar etc. EUR 20 million loan facility signed on 11 July 2012 will be utilized for energy efficiency and renewable energy projects contributing to the protection of the environment and fulfilling AKLease’s environmental and social responsibility.
PROPARCO is a Development Finance Institution jointly held by Agence Française de Développement (AFD) and public and private shareholders from the North and South. Its mission is to catalyze private investment in emerging and developing countries with the aim of supporting growth, sustainable development and the achievement of the Millennium Development Goals (MDGs). PROPARCO ﬁnances investments that are economically viable, socially equitable, environmentally sustainable and ﬁnancially proﬁtable. PROPARCO is one of the main bilateral development finance institutions in the world. It invests on four continents encompassing the major emerging countries and the poorest countries, particularly in Africa, and has a high level of requirements in terms of social and environmental responsibility.