EBRD, İş Leasing expand green financing in Türkiye with €100 million package

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EBRD, İş Leasing green financing in Türkiye

Highlights

EBRD and İş Leasing launched up to €100 million in green financing, including €94 million from EBRD and €6 million in concessional funding from the Clean Technology Fund.
At least 30 per cent of the package targets businesses in 2023 earthquake-affected regions, linking climate investment with disaster recovery in Türkiye.
The EBRD has channelled over €3.3 billion in green finance through Turkish institutions, supporting more than 13,350 projects and financing 5 per cent of Türkiye’s renewable energy capacity.

Funding structure and recovery focus

As announced by the European Bank for Reconstruction and Development, the financing package for İş Finansal Kiralama, known as İş Leasing, reaches up to €100 million to back green investment by businesses across Türkiye. The package includes up to €94 million from the EBRD and up to €6 million in concessional funding from the Clean Technology Fund, part of the Climate Investment Funds.

The loan is being extended under the EBRD’s Türkiye Green Economy Financing Facility III, or GEFF III, which supports energy and resource efficiency, renewable energy, climate resilience and other green investments. At least 30 per cent of the financing is allocated to businesses operating in regions affected by the 2023 earthquakes, linking disaster recovery with longer-term climate-aligned rebuilding.

İş Leasing, founded in 1988, is Türkiye’s second-largest leasing provider and a subsidiary of İşbank, the country’s largest private-sector bank. The new package marks the EBRD’s second financing partnership with the company after a TurSEFF green credit line signed in 2021.

Broader impact on green investment access

EBRD says the partnership is intended to widen access to green finance across Türkiye, particularly for small and medium-sized enterprises and women entrepreneurs. İş Leasing’s position in construction machinery leasing also places it in a strong position to support reconstruction activity in earthquake-affected areas.

Since the launch of the Türkiye Sustainable Energy Financing Facility in 2010, the EBRD has expanded its support through later sustainable energy facilities and successive GEFF programmes. Together, those facilities have channelled more than €3.3 billion in EBRD green finance through Turkish banks and leasing companies, supporting more than 13,350 projects and reaching thousands of companies and close to 4,000 households.

According to the EBRD, renewable energy capacity financed through these facilities now accounts for 5 per cent of Türkiye’s renewable energy. The bank says it has invested more than €26 billion in Türkiye since 2009, largely in the private sector.

Draghi’s warning about restrictive monetary policy highlighted how keeping interest rates above growth for too long can raise debt burdens and ultimately squeeze the productive investment needed for long-term resilience and growth. Our earlier article also noted that central-bank communication shapes market expectations for the rate path, which can either amplify or ease financing conditions for investment when inflation risks and supply shocks remain in focus.

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