Signature(s)
Summary sheet
- Credit lines - Credit lines
The loan will finance renewable energy and energy efficiency investments by Turkish exporting mid-caps, targeting 100% contribution to Climate Action and Environmental Sustainability.
The aim is to finance small renewable energy and energy efficiency projects carried out by the final beneficiaries.
The operation supports the EU and EIB policy objectives and promotes private sector development in the fields of renewable energy, environmental protection, climate change mitigation, and environmental sustainability outside the EU. It will finance renewable energy and energy efficiency investments by Turkish exporters that would otherwise be too small to be financed as individual projects through direct EIB funding. This EIB loan ensures that Mid-Caps gain access to funding at significantly lower interest rates and longer maturities. The operation enhances access to finance for final beneficiaries and improves financing conditions in line with the Bank's policy on the transfer of benefit. The main benefit to final beneficiaries under this operation is the longer tenor made available to them. These improvements also contribute to job creation and preservation. Furthermore, expanding the share of energy produced from renewable sources and boosting energy efficiency will reduce Türkiye's dependency on imported fossil fuels. The intermediary, although a first-time borrower to the EIB in the energy sector, is financially sound and capable of complying with EIB requirements. The operating environment is conducive to achieving the operation's objectives and delivering sustainable impact.
The operation falls within the scope of the EIB's Environmental and Social Standards - "Standard 11 Intermediated Finance". The Borrower / Financial Intermediary has adequate capacity, systems and processes in place for identifying, assessing, managing and monitoring environmental, climate and social (ECS) risks related to the potential sub-projects benefitting from EIB support. The Final beneficiaries will be required to comply with applicable national and EIB E&S standards in respect of environmental and social matters, as appropriate.
Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.
The proposed operation is expected to be guaranteed by a comprehensive EU guarantee under NDICI Investment Window 1 (IW1) mandate, subject to the Commission's confirmation of eligibility.