Financing sustainable energy projects and Turkish microenterprises and SMEs

Finans Leasing, the 6th largest leasing institution, is a company specialized in financing movable and immovable property via leasing and sale and leaseback operations with local microenterprise and SME clients. Finans Leasing is listed on the Istanbul Stock Exchange and is over 99%-owned by QNB FinansBank, which is itself over 99%-owned by QNB (Qatar National Bank).

Proparco is contributing USD 15m to a USD 100m syndication arranged by IFC to finance Turkish microenterprises and SMEs and energy efficiency and renewable energy projects. Indeed, the underlying projects will be required to meet the environmental eligibility criteria defined by the lenders. The portfolio for financing sustainable energy projects currently accounts for some 40% of the outstanding amount of Finans Leasing.

This syndication will support an institution which has demonstrated its commitment to financing sustainable energy projects and has developed real expertise in this field. The project will have impacts on Turkey’s economic, environmental and social development in several ways: support for employing and training local populations, development of Turkey’s private sector, and support for less polluting practices.