Finance Management Organization (FMO) secures €130 million syndicated loan for QNB Leasing in Turkey
A significant €130 million syndicated A/B term loan facility has been arranged by FMO, the Dutch development bank, for QNB Leasing, one of Turkey's largest leasing firms. The loan is designed to support clean energy projects and finance micro, small, and medium-sized enterprises (SMEs) with a focus on beneficiaries such as women, youth, rural, and agricultural development.
The loan structure follows an A/B format, a common approach that combines a senior loan portion (A loan) provided directly by the arranging bank, with a syndicated portion (B loan) wherein other investors participate, often to mobilize additional private capital alongside development finance.
FMO leads the loan syndicate, with Cassa Depositi e Prestiti (CDP), the Italian development bank, as a parallel lender. B-loan participants include responsAbility, the Global Climate Partnership Fund, BlueOrchard Microfinance Fund, and Atlantic Forfaiting — all European impact investors focusing on sustainable development investments.
36% of the funds will be allocated for renewable energy and energy efficiency projects, while the remainder will target QNB Leasing's SME clients to promote sustainable and inclusive economic growth in Turkey. This financing aims to catalyse sustainable economic development in Turkey’s sizable SME sector, which accounts for about 70% of the country's employment.
The loan syndicate's customer benefits from a simplified borrowing agreement, potentially longer-term loans, and access to new lenders with similar impact goals. B-loan participants, in particular, benefit from the lead development bank's networks, international clout, and expertise in deal structuring and impact investing.
QNB Leasing has been operating in Turkey since 1990 and this financing marks another step in its commitment to supporting clean energy projects and SMEs. Previously, the International Finance Corporation has invested $100m in QNB Leasing to support sustainable energy financing and blue finance initiatives related to the ocean economy.
This financing comes at a time when the Turkish government has plans to invest some $20bn in energy efficiency measures by 2030, as part of efforts to achieve a 16% reduction in primary energy consumption. The European Bank of Reconstruction and Development recently deployed an A/B structure to mobilize €100m of additional private sector investment for solar projects in Latvia.
In another notable development, Cibus Capital co-led a $40m investment in a robot mushroom startup, demonstrating the growing interest in sustainable and innovative investments.
[1] Source: FMO Press Release, 16th April 2021.
Read also:
- Industrial blasts at US Steel facility in Pennsylvania claim one life, one person is unaccounted for, and ten individuals suffer injuries
- Marine Protected Area of Apo Island
- Expansion in Wind Energy: Anticipated Amplification of Wind Farm Potential by 20%
- International financing organization EBRD contributes to Akbank's securities issue through covered bond funding
%20secures%20%E2%82%AC130%20million%20syndicated%20loan%20for%20QNB%20Leasing%20in%20Turkey){kind=link}