Financing Agency FMO Secures €130 Million Group Loan for QNB Leasing in Turkey
In a significant move to support clean energy projects and sustainable economic development, the Dutch development bank FMO has arranged a €130 million syndicated A/B term loan facility for Turkish finance company QNB Leasing. This loan, one of the largest syndications for a non-bank financial institution in Turkey, is aimed at fostering financing solutions for environmentally sustainable projects and social inclusion.
About 36% of the loan proceeds will be directed towards financing for renewable energy and energy efficiency projects. The remaining portion will be allocated for support of QNB Leasing's micro and Small-Medium Enterprise (SME) clients that contribute to inclusive growth in Turkey’s substantial SME sector, which accounts for around 70% of the country’s employment.
QNB Leasing, one of Turkey's largest leasing firms, operating in the country since 1990, will use the loan to provide finance for clean energy projects, micro and small companies, and sustainable economic development. The loan facility is backed by European impact investors including responsAbility, BlueOrchard, Global Climate Partnership Fund, BlueOrchard Microfinance Fund, and Atlantic Forfaiting.
The syndicate's customer benefits from a simplified borrowing agreement with the International Finance Corporation, potentially longer-term loans than available elsewhere, and access to new lenders with similar impact goals. QNB Leasing offers leasing facilities across many industries, covering assets such as wind turbines, solar power plants, machinery, vehicles, medical equipment, and agricultural equipment.
The A/B structure of the loan, a common method used by various development banks and institutions, allows other development finance institutions to join the A loan through a parallel loan structure. This approach brings a wider range of investors with impact aims into a facility, as demonstrated by the participation of Italy’s Cassa Depositi e Prestiti (CDP) and funds managed by the Global Climate Partnership Fund and Atlantic Forfaiting.
This loan aligns with Turkey's ambitious plans to quadruple wind and solar energy capacity to 120 gigawatts by 2035 and invest some $20 billion (€17 billion) in energy efficiency measures by 2030, as part of efforts to achieve a 16% reduction in primary energy consumption. The loan facility also supports the Turkish government's aim to create a more inclusive economy, with a focus on benefiting women, youth, and rural and agricultural development.
References: [1] FMO Press Release, "€130m syndicated A/B term loan for QNB Leasing to support clean energy projects and sustainable economic development in Turkey", 2021. [2] International Finance Corporation, "QNB Leasing", accessed 2021. [3] Turkish Statistical Institute, "Employment by sector", accessed 2021.
- The Dutch development bank FMO, in a support for clean energy projects and sustainable economic development,arranged a €130 million syndicated A/B term loan facility for Turkish finance company QNB Leasing.
- This loan, one of the largest syndications for a non-bank financial institution in Turkey, is aimed at fostering financing solutions for environmentally sustainable projects and social inclusion.
- About 36% of the loan proceeds will be directed towards financing for renewable energy and energy efficiency projects.
- QNB Leasing, a leasing firm operating in Turkey since 1990, will use the loan to provide finance for clean energy projects, micro and small companies, and sustainable economic development.
- The A/B structure of the loan allows other development finance institutions to join the A loan through a parallel loan structure, bringing a wider range of investors with impact aims into a facility.
- This loan aligns with Turkey's plans to quadruple wind and solar energy capacity to 120 gigawatts by 2035 and invest some $20 billion (€17 billion) in energy efficiency measures by 2030.
- The loan facility also supports the Turkish government's aim to create a more inclusive economy, with a focus on benefiting women, youth, and rural and agricultural development.
