Financial Management Operations (FMO) spearheads a €130 million syndicated loan for QNB Leasing, a Turkish financial institution.
In a significant move to bolster clean energy financing and promote sustainable economic development, a €130 million syndicated loan facility has been arranged for Turkish finance company QNB Leasing. This loan, one of the largest syndications for a non-bank financial institution (NBFI) in Turkey, involves multiple international development finance participants, including Italy’s Cassa Depositi e Prestiti (CDP), responsAbility, BlueOrchard, and others committed to financial inclusion and sustainability.
The loan, arranged by FMO, a Dutch development bank, will be used by QNB Leasing to provide finance for clean energy projects, micro and small companies, and sustainable economic development. Approximately 36% of the loan proceeds are dedicated to financing renewable energy and energy efficiency projects, promoting green and clean energy within Turkey’s economy.
The remainder of the funds will target QNB Leasing’s micro and small business clients, emphasizing inclusivity by supporting enterprises led by or benefiting women, youth, and rural/agricultural sectors, which are crucial for sustainable socio-economic development. Given that SMEs represent around 70% of employment in Turkey, the facility’s support aims to foster job creation and enhance economic resilience at the grassroots level.
The A/B structure of the loan allows a wider range of investors with impact aims to join the facility. B loan participants benefit from the lead development bank’s networks, international clout, and expertise in deal structuring and impact investing. They also gain access to markets and customers that may otherwise be hard for them to reach.
The Turkish government has plans to invest some $20bn (€17bn) in energy efficiency measures by 2030, as part of efforts to achieve a 16% reduction in primary energy consumption. This loan facility is expected to contribute significantly to these efforts.
In addition to the syndicated loan, the International Finance Corporation has also invested in QNB Leasing with a five-year, $100m loan to support sustainable energy financing and blue finance initiatives related to the ocean economy.
This syndicated loan facility is designed to catalyse green finance and promote inclusive growth in Turkey by enabling QNB Leasing to provide tailored financing solutions that boost clean energy adoption and underpin equitable economic development focused on underrepresented and vulnerable groups.
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