Aklease to finance SMEs’ green investments with EBRD loan

The 99.99% Akbank subsidiary operating in the leasing industry Aklease has got EUR 25m loan from the European Bank for Reconstruction and Development (EBRD) in order to finance energy and water efficiency as well as waste minimization and small-scale renewable energy investments of SMEs in the country, according to a statement from the EBRD.

“Leasing is an important tool to finance businesses as well as it’s popular for the purchase and use of equipment and vehicles. Together with Aklease, we want to encourage smaller enterprises to invest in greener and more climate-friendly solutions,” said Francis Malige, Managing Director for Financial Institutions of EBRD.

The loan is extended under the third phase of the Turkey Sustainable Energy Financing Facility Program (TurSEFF) backed by the European Union and funds of the country’s Ministry of Treasury and Finance. The credit line, which was launched in 2010 has provided EUR 694m loan for more than 2,000 projects to date. It has also supported the installment of 595 megawatts of renewable capacity in the country.

“We’ll no longer finance coal-fired thermal power plants and coal mining investments. We’ve implemented ECOLease as we transform our environmental, social and governance culture,” said Cetin Duz, General Manager of Aklease.

ECOLease is the company’s leasing-industry product focused on renewable energy as well as energy and resource efficiency.

Sustainable energy took a share of 70-75% in total investments of Aklease in 2020.

The EBRD has invested almost EUR 13.5bn in the country through 341 projects, 96% of which are in the private sector. In 2021, the Bank will support the country’s post COVID-19 recovery, according to the institution.

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