MICROCAPITAL BRIEF: Green for Growth Fund, Southeast Europe (GGF) Lends $20m to Yapi Kredi Leasing of Turkey to Support Use of Energy-Efficient Equipment

The Green for Growth Fund, Southeast Europe (GGF), a Germany-based fund that invests in energy efficiency and renewable energy sources in Southeast Europe, has loaned EUR 15 million (USD 19.9 million) to Yapi Kredi Leasing, a Turkey-based subsidiary of Turkey’s Yapi Kredi Bank, with the aim of expanding Yapi Kredi’s “sustainable long-term energy efficient equipment financing.” Yapi Kredi Leasing leases a variety of products to corporate clients and micro-, small and medium-sized enterprises (MSMEs) in Turkey. The GGF loan is expected to lead to a reduction in energy use of 8,250 megawatt-hours and 1,800 tons in carbon dioxide emissions. This is the second loan from GGF to Yapi Kredi Leasing, the first one coming in 2010.

Özgür Maras, the general manger of Yapi Kredi Leasing, stated, “We believe that our cooperation with the GGF will strengthen our ability to support energy investments in Turkey… [We] will utilize these financial resources to help grow MSMEs, the backbone of the Turkish economy” [1].

As of December 31, 2013, GGF reported total assets of EUR 242 million (USD 326 million), a loan portfolio of EUR 170 million (USD 229 million) and a profit of EUR 430,000 (USD 579,000). As of 2013, Yapi Kredi Leasing reported total assets of TRY 4.6 billion (USD 2.1 billion) [2]. In 2013, Yapi Kredi reported total assets of TRY 160 billion (USD 73.6 billion), a gross loan portfolio of TRY 99.4 billion (USD 45.7 billion) outstanding and deposits of TRY 88.5 billion (USD 40.6 billion) [3].

By Benjamin Krupp, Research Associate

About Green for Growth Fund, Southeast Europe (GGF)

Luxembourg-based Green for Growth Fund, Southeast Europe (GGF) focuses on expanding the use of renewable energy sources and enhancing energy efficiency in Southeast Europe. GGF finances and refinances energy-efficiency initiatives and invests in small to medium-scale renewable energy projects. Furthermore, GGF offers technical support and funding to local financial institutions. GGF was established in 2009 by Germany’s Kreditanstalt für Wiederaufbau (KfW) and the Luxembourg-based European Investment Bank (EIB) with the financial support of the following organizations: EU’s European Commission, the German Federal Ministry for Economic Cooperation and Development (also known by its German acronym BMZ), and the European Bank for Reconstruction and Development (EBRD). As of 2014, GGF operates in 13 countries: Albania, Armenia, Azerbaijan, Bosnia and Herzegovina, Croatia, Former Yugoslav Republic of Macedonia, Georgia, Kosovo, Moldova, Montenegro, Serbia, Turkey and Ukraine. GGF reported total assets of EUR 242 million (USD 326 million), a loan portfolio of EUR 170 million (USD 229 million) and a profit of EUR 430,000 (USD 579,000) as of December 31, 2013.

About Yapi Kredi

Founded in 1944, Yapi Kredi is a privately owned bank with approximately 1,000 branches 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), deposits of TRY 71.1 billion (USD 36.4 billion) and 6.5 million customers. Yapi Kredi Leasing, a subsidiary of Yapi Kredi also operating in Turkey, reported total assets of TRY 4.6 billion (USD 2.1 billion) in 2013.

[1] Information provided to MicroCapital by GGF, August 20, 2014

[2] Yapi Kredi Leasing: Yapi Kredi Finansal Kiralama 2013

[3] Yapi Kredi: Annual Report 2013

MicroCapital, July 25, 2014: AccessBank Azerbaijan Receives $15m Loan from Green for Growth Fund for Financing Energy-Efficient Projects

MicroCapital, May 21, 2014: Partner Microcredit Foundation (PMCF) of Bosnia and Herzegovina Borrows $5.5m from Green for Growth Fund (GGF) for Energy Efficiency Financing

MicroCapital, April 15, 2014: European Fund for Southeast Europe (EFSE) Loans $26m to Yapi Kredi of Turkey to Support Leasing to Micro-, Small, Medium-sized Enterprises (MSMEs)

MicroCapital Universe Profile: Green for Growth Fund, Southeast Europe (GGF)

MicroCapital Universe Profile: Yapi Kredi

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