For more information, journalists are welcome to contact:
Senior Communications Advisor
T +31 (0)70 314 9928
FMO, the Dutch development bank and IFC, a member of the World Bank Group are providing a long-term loan to Finans Leasing, a leading Turkish leasing company and a subsidiary of QNB Finansbank. The financing will allow Finans Leasing to boost lending to small and medium enterprises (SMEs) across Turkey, helping them to invest in eco-friendly projects, cut production costs, and protect the environment.
IFC is extending a five-year loan in Turkish lira, equivalent to $50 million, to Finans Leasing. FMO is providing an additional loan in Turkish lira, equivalent to $35 million. The financing will support Finans Leasing’s sustainable energy program, which provides businesses with energy-efficient equipment and machinery, supports production line upgrades, and promotes renewable energy. Finans Leasing plans to increase its energy efficiency lending by 35 percent percent in the next three years.
Metin Karabiber, General Manager of Finans Leasing, said: “Working once again with our strategic partner IFC, with the participation of FMO, we aim to finance the energy efficient investments of our SME clients that want to increase their productivity while decreasing their costs. While our customers benefit from long-term funding in local currency, the financing also helps preserve the natural resources of our country.”
About 60 percent of Turkey's power currently comes from fossil fuels and 60 percent of the country's production relies on imported energy. To change this, Turkey needs to increase capacity, but also invest in energy efficiency. Turkey adopted a wide-ranging energy efficiency law in 2007, laying the groundwork for a series of energy-efficiency-focused policies.
Manuel Reyes Retana, Regional Head of IFC's Financial Institutions Group in Europe, the Middle East, and North Africa, said: “In Turkey, the biggest challenge SMEs face when it comes to investing in energy efficiency is a lack of long-term funding. Only 27 percent of commercial bank loans go to SMEs. We have established a strong track record of working with leasing companies in Turkey, who are instrumental in helping SMEs to use sustainable energy financing and invest in energy-efficient equipment.”
FMO's Nico Mensink, Senior Investment Officer for Eastern Europe and Central Asia, said: “This energy efficiency credit line to Finans Leasing fits perfectly in FMO’s sustainable development strategy. It will help the Turkish private sector to reduce its greenhouse gas emissions, and hence contributes to the fight against climate change. Finally, the long-term financing has been provided in Turkish lira, helping to create a healthier Turkish financial sector.”
Energy efficiency has been a key focus for IFC in Turkey. SMEs make up about 90 percent of Turkey’s economy and helping them become more energy efficient will decrease carbon emissions, increase eco-friendly production processes, and spur growth in the long term. Since 2013, IFC has provided over $600 million in financing for such investments in Turkey. IFC has supported private sector development in Turkey for over 50 years. With a $5 billion portfolio, Turkey is the second-largest country in IFC’s global portfolio.
About Finans Leasing
Finans Leasing established in 1990 as Turkey’s fifth leasing company, is a subsidiary of Qatar National Bank S.A.Q. (QNB Group), the largest bank of Qatar and the leading financial organization in the Middle East and Africa region. Finans Leasing is an important player in the country’s leasing sector. Finans Leasing continues its presence as one of the leading companies in the leasing sector in terms of high profitability, high growth rates and efficiency.