news - FMO arranges USD 110 million syndicated loan for AK Finansal Kiralama


FMO arranges USD 110 million syndicated loan for AK Finansal Kiralama

December 20, 2017

First multi-tranche and multi-currency 5-year Syndicated loan in Turkish leasing sector

Ak Finansal Kiralama A.Ş. (“Aklease”), the leasing subsidiary of Akbank T.A.S., announces that it has signed a Syndicated Loan Agreement totaling USD 110 million. The credit line has been arranged by FMO, the Dutch Development Bank, together with The European Bank for Reconstruction and Development (EBRD), The Green for Growth Fund, Southeast Europe S.A., Sicav-Sif (GGF) and The OPEC Fund for International Development (OFID). Other participants are undisclosed institutional investors through FMO's syndications platform.

The proceeds of the loan will be used to support renewable energy & energy efficiency projects, Small and Medium-Sized companies (SME’s) and international trade finance projects. FMO's Chief Investment Officer Linda Broekhuizen commented: "FMO is proud to have arranged this successful syndicated loan agreement for Aklease, bringing a strong group of investors to Aklease. It will enable Aklease to continue its growth in renewable energy projects and helps support job creation in the country through SME’s."

Şenol Altundaş, General Manager of Aklease: “. Thanks to our cooperation with Dutch Development Bank (FMO); we have obtained the first 5-year market syndicated  loan of Turkish leasing sector, amounting to USD 110 million with the contribution of well-established finance institutions as FMO, EBRD, GGF, OFID and other funds. This long-term funding source confirms international finance institutions’s confidence in Turkey and our company within Akbank Group.

As Aklease, with our pioneer position in leasing sector since 1988, we’re providing financial support to investors varies from corporate segment to SMEs. We have a diversified funding network which our customers may achieve for their investments. Along with financing machinery and equipment as the main investment item in Turkey, we’re able to offer leasing opportunity to our customers in renewable energy and sizable infrastructure investments with our expert team; thanks to our potential to reach long-term and cost-effective  competitive funds convenient for financing those  projects.

We have already financed to date almost 120 mw Solar Energy and 60 mw Wind Energy System investments; and by this new source we will continue to finance renewable energy, and energy efficiency investments that are currently in our pipeline; as well as continue to support foreign trade by the tranche to be used in financing import.”

Arvid Tuerkner, EBRD Managing Director, Turkey, said: “We are excited for Aklease to become our first leasing partner to support resource efficiency in Turkey. Leasing is an attractive and valuable alternative to traditional bank financing. Better access to lease funding will encourage entrepreneurial activity, which in turn will support the country’s transition to a greener economy.”

Green for Growth Fund Chairman Christopher Knowles stated: “The Green for Growth Fund is very pleased to join this financing consortium and to contribute to the advancement of renewable energy and energy efficiency leases in Turkey, supporting the fund’s overall mission.”

OFID’s Acting Assistant Director General and Head of Private Sector and Trade Finance Operations Department, Tareq Alnassar, said: “OFID is committed to strengthening international trade in support of social and economic advancement. In line with this, we’re proud to participate in this agreement to promote growth and sustainable development in Turkey.”

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