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CASE STUDY 39:                TURKEY – COMERCIALIZING SUSTAINABLE ENERGY
                              FINANCE PROGRAM
 Barriers               Lack of access to credit, lack of technical capacity

 Instrument             Senior Loan

 Application            Financing of energy efficiency and renewable energy projects

 Amount                 US$75 million


PROJECT BACKGROUND AND OBJECTIVES                              INSTITUTIONAL ARRANGEMENTS
Financial intermediaries in Turkey do not typically have       The project will help the partner financial intermediaries
the expertise and technical capacity to evaluate or            develop financial leasing products targeting sustainable
identify sustainable energy projects. They also have           energy projects, and build internal capacity to properly
limited access to the long term funding needed to              market and evaluate this new asset class.
finance renewable energy projects. As a result of these
                                                               OUTCOMES
hurdles, financial intermediaries are hesitant to provide
financing to energy efficiency and renewable energy            The investments are expected to encourage two first-
projects.                                                      mover leasing companies to develop investment
                                                               programs for small-scale renewable energy and energy
With the support of the Clean Technology Fund (CTF),
                                                               efficiency projects. Overall, the credit lines are expected
IFC provided US$75 million in loans to two Turkish
                                                               to expand the private financing of energy efficiency and
leasing companies, to encourage energy efficiency and
                                                               renewable energy projects, establishing a track record
renewable energy lending, in order to establish a track
                                                               of successful investments which will help reduce initial
record of successful investments, which is expected to
                                                               market barriers and promote similar investments by
promote uptake of similar investments by other
                                                               other financial intermediaries in the country.
financial intermediaries.

INSTRUMENTS USED
Partner leasing companies have received a $50 million
and a US$25 million senior loan respectively. Each loan
included a tranche funded by the CTF with concessional
pricing and a longer tenor so that the leasing companies
can adequately finance small-scale renewable energy
project.



Further reading
IFC, Yapi Kredi Lease Energy Efficiency: Summary of Proposed Investment – click here
IFC, FinansL EE: Summary of Proposed Investment – click here
Climate Investment Funds, Commercializing Sustainable Energy Finance Program for Turkey (CSEF) – click here



1 | R E F I N e www.worldbank.org/energy/refine