The European Bank for Reconstruction and Development (EBRD) has extended a €100mn loan to ING Turkey, a unit of ING Bank (Amsterdam/INGA), the development bank said on November 23.

The EBRD will directly provide €95mn while its Clean Technology Fund (CTF) is to contribute with $5mn.

ING Turkey will use €80mn and $5mn of the facility to extend loans for green investments under its €520mn Green Economy Financing Facility (GEFF).

The remaining €15mn will be used to extend loans to women-led small and medium sized enterprises (SMEs) under its €600mn Turkey Women in Business II (TurWib II) programme.

The GEFF, launched in November 2021, builds on the Turkey Sustainable Energy Financing Facility (TurSEFF), launched in 2010.

In March, the EBRD approved a loan of up to €5mn for ING Leasing, or ING Finansal Kiralama, under the GEFF.

ING Leasing, launched in 2010 by ING Turkey, is the 10th largest leasing company in Turkey

There are 21 leasing companies in Turkey, mainly owned by local banks. The combined transaction volume of the industry was up 2% y/y to $4.1bn in 2022.

In line with local peers, ING Turkey, the 13th largest bank in Turkey, with Turkish lira (TRY) 145bn ($5bn) of assets at end-September, has a B-/Stable (one notch below Turkey’s sovereign rating and six notches below investment grade) from Fitch Ratings.

The EBRD is the largest single-entity creditor and institutional investor in Turkey. Since 2009, it has invested €19bn in the country. Its outstanding Turkey portfolio valued at €7bn is the largest country portfolio the EBRD has in terms of the 38 economies in which the bank invests.

In 2022, the development bank invested a total of €1.6bn in Turkey. As a result, Turkey was the lender's top investment destination for the third year running.

©2023 bne IntelliNews , source Magazine