news - Syndicated loan of EUR 100mln for QNB Finansleasing

Turkey based QNB Finansleasing will receive a EUR 100 million syndicated loan, for which FMO acted as originator, arranger and agent. QNB Finansleasing is one of the leading lease companies in Turkey, offering lease contracts for  – amongst others – heavy machinery, solar panels, medical equipment and offices. The loan is 70 percent earmarked for SMEs, who mostly lease new equipment and long-term assets. The other 30 percent is reserved for renewable energy (mainly solar panel leasing contracts) and energy efficiency products (at least 20% energy saving versus the base line).

Participants in this syndicated loan include Atlantic Forfaiting, BlueOrchard Microfinance Fund (BOMF), European Fund for Southeast Europe (“EFSE”), Microfinance Enhancement Fund (“MEF”) and Oesterreichische Entwicklungsbank (“OeEB”). The facility includes a 3-year and a 5-year tranche.

,,With this transaction we demonstrate our impact commitment in combination with our strong syndication capabilities under challenging market conditions in Turkey,’’ said Nico Mensink, senior Invest Officer at FMO.

,,Within the framework of the syndication agreement signed with FMO, a Netherlands-based international credit institution, a total of EUR 100 million in loans has been provided with 3- and 5-year terms, and we will finance the projects in support of our small and medium-sized enterprises - SMEs with 70% of the loan, and providing renewable energy and energy efficiency with the remaining 30%. We are also delighted to contribute to the country's economy by reducing our customers' production costs with the syndication loan we have provided, thus meeting the financing needs for their investments,’’ said QNB Finansleasing CEO Metin Karabiber.

In particular during the current period of economic volatility in Turkey, combined with the worldwide COVID-19 pandemic, this long-term facility offers QNB Finansleasing a stable funding base to on-lend to SMEs and green assets. SMEs in Turkey are still an underserved segment and are important for the Turkish exporting sector and job creation. This transaction in the Turkish leasing sector fits in FMO’s impact strategy, which focuses on SDG 8 (economic growth/decent work), SDG 13 (climate action), and SDG 17 (partnerships).

FMO has been active in Turkey for more than 25 years and is focusing on high impact transactions in the financial sector, renewable energy sector, the agri food and water sector as well as the private equity market. With a total committed portfolio of around EUR 400 mln, Turkey represents a sizable market for FMO.

About QNB Finansleasing

QNB Finansleasing, established in 1990 as Turkey’s fifth leasing company, is a subsidiary of QNB Finansbank which  is acquired by Qatar National Bank S.A.Q (QNB Group), the biggest bank in Qatar and a leading financial institution in the Middle East and Africa region in 2015.QNB Finansleasing continues its presence as one of the leading companies in the leasing sector in terms of high profitability, high growth rates and efficiency.