Yapi Kredi Bank, a Turkish member of Italy-based UniCredit Group, recently sold the local-currency equivalent of USD 60 million in covered bonds to the UK-based European Bank for Reconstruction and Development (EBRD). The bonds, which are backed by housing loans, are slated to fund residential energy efficiency projects carried out by homeowners, housing managers and firms dealing in energy-efficient equipment.
The funding is supported by a concessional loan of USD 15 million from the Clean Technology Fund, the largest of the four Climate Investment Funds. These funds have secured pledges totaling USD 8.3 billion since 2008 to assist “72 developing and middle-income countries with urgently needed resources to manage the challenges of climate change and reduce their greenhouse gas emissions.”
The Head of the Climate Investment Funds, Mafalda Duarte, said the funding package will “incentivise Turkish home owners to invest in renewable energy and energy efficiency, and to mainstream climate finance in the Turkish financial sector.”
Founded in 1944, Yapi Kredi Bank offers private, retail, commercial and corporate banking services through 870 branches in Turkey. For 2017, it reported net income of TRY 3.6 billion (USD 1 billion) on total assets of TRY 320 billion (USD 84 billion), outstanding loans of TRY 200 billion (USD 53 billion), deposits of TRY 180 billion (USD 47 billion) and 13 million customers. UniCredit, which has 7,100 branches mostly in 14 countries in Europe, reported total assets of EUR 881 billion (USD 946 billion) as of 2017.
EBRD was founded in 1991 and has 65 shareholding countries as of 2017. With a focus on “the promotion of private and entrepreneurial initiative” in Eastern Europe, Central Asia, Northern Africa and the Middle East, it invested EUR 9.4 billion (USD 10.1 billion) in companies in 30 countries during 2016.
Sources and additional resources
Yapi Kredit 2017 Investor Presentation
https://www.yapikredi.com.tr/medium/file/2017-investor-presentation_42905/download
UniCredit Group
https://www.unicreditgroup.eu/
Climate Investment Funds
https://www.climateinvestmentfunds.org
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