IFC lends $96m for renewable energy projects in Turkey

World Bank Group member International Finance Corporation (IFC) is offering $96m loan to Turkish leasing company Yapi Kredi Leasing, in order to promote energy efficiency and renewable energy in the country.

Of the total amount, around $64m will be directly provided by IFC from its own resources, while the remainder $32m has been raised through the IFC-Managed Co-Lending Portfolio Program.

The loan amount will be used to finance renewable energy projects, which are expected to lower greenhouse gas emissions in the country.

IFC Europe, Middle East, and North Africa Financial Institutions Group associate director Edward Strawderman said: "IFC’s loan will boost lending to local companies at a time when businesses continue to face difficulties obtaining funding to improve energy efficiency and for renewable energy, key to sustainable development."

Yapi Kredi Leasing general manager Ozgur Maras said: "Yapi Kredi Leasing has had a strategic partnership with IFC in sustainable energy financing since 2008. We have worked together to increase lending for energy-efficient machinery and equipment."

According to the data provided by IFC’s Investment Potential in EMENA report, Turkey has a climate-smart business investment potential of over $89bn.

The investment potential in energy generation is accounted to be around $42bn, of which $22bn is in renewables.