GEFF – Turkiye – GarantiBBVA Leasing

Project Description

A senior unsecured loan of up to EUR 25 million equivalent, available in EUR and/or USD, with a 2-year final maturity and bullet principal repayment, available for GarantiBBVA Leasing under the Green Economy Financing Facility Türkiye (“GEFF Türkiye”) Framework.

Project Objectives

The proceeds of the Bank`s investment will be used to finance eligible sub-projects, selected according to the technical, financial and environmental eligibility criteria as per the GEFF Türkiye Policy Statement. The project aims to support green economy investments including among others energy efficiency, renewable energy and climate resilience measures. Funds may also be on-lent to vendors and producers of eligible material and equipment covered by the Green Technology Selector for Türkiye.

The proposed facility will be the first transaction with the Company under GEFF Türkiye and builds on the Company’s experience and successful utilisation of the two TurSEFF lines signed in 2018 and 2021. The proposed facility will help GarantiBBVA Leasing to continue to expand its on-lending to private sector SMEs, both women and men-led, for energy efficiency and small-scale renewable energy investments, promoting female entrepreneurs’ access to green technologies. The facility will also aim to help set higher standards and build capacity in the market by better instilling climate risk factors into the Company’s leasing practices as the 4th largest player in the market.

Transition Impact

ETI score: 70

70

Transition impact is expected to derive from the Green and Well-governed qualities of GEFF Türkiye.

Green: the project will promote the transition to environmentally sustainable, low-carbon and climate-resilient economies in Türkiye.

Well-governed: the project will contribute toward Garanti BBVA Leasing’s corporate climate governance practices.

Client Information

GARANTI FINANSAL KIRALAMA AS

Garanti Finansal Kiralama A.S . (“GarantiBBVA Leasing”, “GL” or “the Company”), an existing client of EBRD, was established in 1990 as a fully-owned subsidiary of Garanti BBVA and was the 4th largest leasing company in Türkiye by leasing receivables (10.3% market share) as of 1H22. The Company has a strong market position with a primary focus on SME clients. It is rated B- (negative) by Fitch in line with its parent, Garanti BBVA’s rating.

EBRD Finance Summary

EUR 25,000,000.00

A senior unsecured loan of up to EUR 25 million, available in EUR and/or USD. 

Total Project Cost

EUR 25,000,000.00

EUR 25 million equivalent

Additionality

Key sources of additionality under the project are:

 (i) innovative financing structures and/or instruments (financing instrument that integrates climate and ESG standards);

(ii) standard setting: helping project and clients achieve higher standards (help women and men sub-borrowers build their resilience in the face of a changing climate);

(iii) risk mitigation (helping the Company to manage climate-related risks at a more advanced level); and

(iv) financing structure of the facility providing the Company with medium-term financing to support diversification of the funding base.

Environmental and Social Summary

Categorised FI (ESP 2019): Garanti BBVA Leasing is an existing client with has an ESMS in place and will be required to continue to comply with EBRD’s Performance Requirements (PRs) 2, 4 and 9; continue to implement the applicable E&S Risk Management Procedures for Leasing Companies and submit the Annual Environmental and Social Reports to the Bank. Garanti BBVA Leasing also will be required i) to apply the Exclusion List introduced with ESP 2019 as well as the Referral list and ii) to implement the E&S Eligibility Criteria for Renewable Energy Projects as part of the GEFF Loan, as applicable for each sub-project.

 

Technical Cooperation and Grant Financing

The project will be supported by a TC package for the engagement of the Facility Consultant (FC), responsible for overseeing the general operation of the project, for origination, review and approval of sub-projects; and for providing policy dialogue and other services to help achieve EBRD’s aims for the project.

Funding source: Clean Technology Fund (CTF), Türkiye-EBRD Cooperation Fund, SSF, and potentially other bilateral donors.

Company Contact Information

DAMLA BINICI
[email protected]
+90 216 625 41 50
+90 216 625 41 50
https://www.garantibbvaleasing.com.tr/
Çamçesme Mahallesi,Tersane Caddesi No:15, Pendik, 34899, Istanbul

PSD last updated

15 Dec 2022

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168

Email: [email protected]

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794

Email: [email protected]

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD’s Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to [email protected]. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank’s countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email [email protected] to get guidance and more information on IPAM and how to submit a request.