MICROCAPITAL BRIEF: European Bank for Reconstruction and Development Loans $80m to Turkey’s Yapi Kredi for SME Energy Efficiency Projects

The UK-based European Bank for Reconstruction and Development (EBRD) recently loaned USD 80 million to Yapi Kredi, a Turkish commercial bank, in an effort to promote energy efficiency and renewable energy investments for small and medium-sized enterprises in Turkey. The loan is provided under the EBRD Turkish Sustainable Energy Financing Facility (TurSEFF), which launched in 2010 and has received a total of USD 550 million in grant funding from the European Union [1].

In 2012, Yapi Kredi reported total assets of TRY 131.5 billion (USD 67.2 billion), 6.5 million customers and deposits of TRY 71.1 billion (USD 36.4 billion). Information on gross loan portfolio, return on assets and return on equity are not available. For the same year, EBRD invested EUR 1 billion (USD 1.3 billion) in 28 projects in Turkey [2]. Since 2009, EBRD has invested approximately EUR 1.2 billion in sustainable energy projects in Turkey. In 2012, EBRD invested EUR 8.7 billion (USD 11.4 billion) in 34 countries.

By Jennifer Young, Research Associate

About Yapi Kredi
Founded in 1944, Yapi Kredi is a privately-owned bank that offers private, retail, commercial and corporate banking services in Turkey. In 2012, Yapi Kredi reported total assets of TRY 131.5 billion (USD 67.2 billion), 6.5 million customers and deposits of TRY 71.1 billion (USD 36.4 billion). Information on gross loan portfolio, return on assets and return on equity are not available.

About European Bank for Reconstruction and Development
The European Bank for Reconstruction and Development (EBRD) is a multilateral institution headquartered in London. The bank began operations in 1991 upon the agreement of 40 countries and is owned by 61 countries as well as the European Investment Bank and the European Union as of 2012. It aims to finance operations that are both commercially viable and assist development in 29 countries in Eastern Europe, Central Asia and North Africa. It does this by providing loans, debt securities, equity investments, guarantees and technical assistance to micro- and small businesses via commercial banks and non-bank microfinance institutions (MFIs). In 2012, EBRD invested EUR 8.7 billion (USD 11.4 billion) in 388 projects across 34 countries.

Sources and Additional Resources

[1] European Bank for Reconstruction and Development Press Release, “Yapi Kredi to Finance Sustainability Energy with EBRD Loan,” http://www.ebrd.com/pages/news/press/2013/130628e.shtml

[2] European Bank for Reconstruction and Development Factsheets, “Turkey,” http://www.ebrd.com/downloads/research/factsheets/turkey.pdf

MicroCapital Story, June 10, 2013, “MICROCAPITAL BRIEF: European Bank for Reconstruction and Development May Offer $40m in Subordinated Debt to Turkey-based Fibabanka,” https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-may-offer-40m-in-subordinated-debt-to-turkey-based-fibabanka/

MicroCapital Story, May 21, 2013, “MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) Loans $80m to Turkey’s Vakiflar Bankasi (Vakifbank) for SME Energy-Efficiency Projects,”
https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-loans-80m-to-turkeys-vakiflar-bankasi-vakifbank-for-sme-energy-efficiency-projects/

MicroCapital Story, April 17, 2013, “MICROCAPITAL BRIEF: European Bank for Reconstruction and Development Loans $197m to Turkey’s Isbank to Support Small, Medium-sized Enterprises, $350m to Turkish Banks for Energy Efficiency,” https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-loans-197m-to-turkeys-isbank-to-support-small-medium-sized-enterprises-350m-to-turkish-banks-for-energy-efficiency/

MicroCapital Story, March 8, 2013, “MICROCAPITAL BRIEF: EBRD Plans $200m to Expand Turkish Sustainable Energy Finance Facility (TurSEFF) for Small and Medium-sized Enterprises, Private Households,” https://www.microcapital.org/microcapital-brief-ebrd-plans-200m-to-expand-turkish-sustainable-energy-finance-facility-turseff-for-small-and-medium-sized-enterprises-private-households/

MicroCapital Story, January 7, 2013, “MICROCAPITAL BRIEF: European Fund for Southeast Europe (EFSE) Loans $32m to Garanti Leasing of Turkey to Boost Services to Micro, Small and Medium-Sized Enterprises,” https://www.microcapital.org/microcapital-brief-european-fund-for-southeast-europe-efse-loans-32m-to-garanti-leasing-to-boost-services-to-microsmall-and-medium-sized-enterprises/

MicroCapital Universe Profile: Yapi Kredi, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Yapi+Kredi

MicroCapital Universe Profile: European Bank for Reconstruction and Development (EBRD), http://microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Bank+for+Reconstruction+and+Development+%28EBRD%29

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