Financial Management Office (FMO) spearheads a joint loan worth €130 million for QNB Leasing, a Turkish leasing company.

In a significant stride towards environmental sustainability and inclusive economic growth, FMO, a Dutch development bank, has arranged a €130 million syndicated A/B term loan facility for Turkish finance company QNB Leasing. The purpose of this facility is to finance clean energy projects, micro and small companies, and promote sustainable economic development in Turkey.

The A/B structure of the loan allows a wider range of investors with impact aims to join the facility, including responsAbility, BlueOrchard, Global Climate Partnership Fund, BlueOrchard Microfinance Fund, and Atlantic Forfaiting. This diversity of investors not only mobilizes €100 million of additional private sector investment, thanks to a recent deployment by the European Bank of Reconstruction and Development using an A/B structure, but also provides QNB Leasing's customers with potential benefits such as simplified borrowing agreements, longer-term loans than available elsewhere, and access to new lenders with similar impact goals.

B loan participants, such as QNB Leasing, gain access to markets and customers that may otherwise be hard to reach, benefiting from the lead development bank's networks, international clout, and expertise in deal structuring and impact investing. The loan syndicate members, including QNB Leasing, are seeking to support clean energy financing and inclusive and sustainable economic development.

The facility will be used by QNB Leasing to provide finance for clean energy projects, micro and small companies, and sustainable economic development. In line with Turkey's Energy Efficiency Strategy and Action Plan, aiming to invest some $20 billion in energy efficiency measures by 2030, and the Renewable Energy Roadmap with ambitions to quadruple wind and solar energy capacity to 120 gigawatts by 2035, 36% of the loan proceeds will be directed towards financing for renewable energy and energy efficiency projects.

Moreover, the remainder of the loan proceeds will be allocated for support of QNB Leasing's micro and SME clients that benefit women, youth, and rural and agricultural development. By doing so, the facility promotes inclusive and sustainable economic growth, enabling access to finance for SMEs, which are a crucial part of Turkey's economy, accounting for around 70% of employment in the country.

This loan facility represents one of the largest syndicated loan deals for a non-bank financial institution in Turkey, highlighting increased market confidence in sustainable finance solutions. The facility is set to catalyze environmental sustainability by funding clean energy projects and foster economic inclusion and development by empowering micro and small businesses, particularly those with social impact dimensions, thereby supporting Turkey’s green transition and broader economic sustainability goals.

In addition, the International Finance Corporation has recently invested a $100 million loan into QNB Leasing to support sustainable energy financing and so-called blue finance initiatives related to the ocean economy. This further underscores the commitment of international financial institutions to supporting Turkey's sustainable development goals.

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FMO arranges €130m syndicated A/B term loan facility for Turkish finance company QNB Leasing
FMO leads €130m loan to support QNB Leasing's green and inclusive finance in Turkey
Turkey's SME sector: the engine of growth
The syndicated A/B term loan facility arranged by FMO for Turkish finance company QNB Leasing aims to promote social impact by financing clean energy projects and supporting micro and small businesses.
The loan facility, one of the largest syndicated loan deals for a non-bank financial institution in Turkey, fosters financial inclusion by enabling access to finance for small-scale enterprises, a key sector accounting for 70% of employment in the country.
In line with Turkey's Energy Efficiency Strategy and Action Plan, the facility directs 36% of its proceeds towards financing for renewable energy and energy efficiency projects, aiming to quadruple wind and solar energy capacity to 120 gigawatts by 2035.
The remaining loan proceeds are allocated to support QNB Leasing's micro and small business clients that focus on areas such as women, youth, and rural and agricultural development, thereby promoting inclusive and sustainable economic growth.
Beyond the loan facility, the International Finance Corporation has invested a $100 million loan into QNB Leasing to support sustainable energy financing and blue finance initiatives related to the ocean economy, signifying the commitment of international financial institutions to Turkey's sustainable development goals.
As the loan syndicate members, including QNB Leasing, seek to support clean energy financing and inclusive and sustainable economic development, this transaction underscores the growing appeal of sustainable finance solutions in the business sector, including real estate, industry, home and garden, and lifestyle investments.
The science behind climate-change and the importance of environmental-science play crucial roles in driving the need for sustainable finance and economic development, as clean energy projects and sustainable living contribute to mitigating the impacts of climate-change and preserving the environment for future generations.