The Netherlands Development Finance Company, a public-private partnership also known by its Dutch acronym FMO, recently loaned USD 25 million to Aklease, a leasing subsidiary of Turkish bank Akbank, to be used for solar energy projects. Through this loan, Aklease aims to increase the “green” portionof its portfolio from 12 percent to 15 percent while decreasing the emission of greenhouse gasses by 12,000 tons. This work contributes to broader efforts to “delink” Turkey’s economic growth from its level of greenhouse gas emissions.
Aklease serves companies and self-employed individuals with lease funding for real estate, software, vehicles, machinery and other forms of movable collateral. As of December 2020, the firm had a total lease portfolio of USD 789 million. During 2019, Aklease generated return on assets of 2.6 percent and return on equity of 12.5 percent. Its parent organization, Akbank, reported a total portfolio of TRY 269 billion (USD 35.6 billion) as of 2019.
Established in 1970, FMO is 51-percent held by the Dutch government and 49-percent by private sector institutions. The entity works toward the UN’s Sustainable Development Goals by funding capacity development as well as placing debt and equity investments in sectors such as agribusiness, financial institutions and energy. During the six months ending June 2020, FMO lost EUR 280 million (USD 330 million) on a total portfolio of EUR 12.7 billion (USD 14.9 billion).
By Sai Bommineni, Research Associate
Sources and Additional Resources
FMO press release
https://www.fmo.nl/news-detail/2c8e525e-7db5-49fe-8841-a10e4931afe1/fmo-supports-sustainable-development-in-turkey-during-covid-times-via-aklease
Aklease homepage
https://www.aklease.com
Akbank homepage
https://www.akbank.com/
Akbank corporate profile
https://www.akbankinvestorrelations.com
FMO June 2020 interim report
https://annualreport.fmo.nl/2019/interim-report-2020/letter-from-the-management-board
Previous MicroCapital article on FMO and Microgrid Investments in Tanzania and India
https://www.microcapital.org/microcapital-brief-fmo-loans-5m-to-husk-power-systems-for-renewable-energy-generated-from-biofuels-distributed-via-minigrids-in-rural-india-tanzania/
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