EBRD mulls 100 mln euro loan to Turkey's Garanti Bank

ISTANBUL (Turkey), October 13 (SeeNews) – The European Bank for Reconstruction and Development (EBRD) said on Monday it is considering providing 100 million euro ($127 million) to Turkish lender Garanti Bank [BIST:GARAN] for on-lending to private sector borrowers for mid-size renewable energy, waste-to-energy and industrial energy efficiency investments.

The EBRD will provide the long-term financing through investment in the existing diversified payment rights (DPR) programme of Garanti Bank or on a senior unsecured loan basis, it said in a statement.

The financing facility is a sub-project under the mid-size energy efficiency, renewable energy and waste-to-energy investments (MidSEFF) framework operation including 300 million euro in senior loans/DPR programmes and 100 million euro of EBRD direct risk participation in select sub-projects.

A further 300 million euro of co-financing is anticipated from other multilateral or bilateral financing institutions. In addition, the project will be supported by a comprehensive technical cooperation package provided for the benefit of the sub-borrowers, the EBRD said.

The proposed EBRD financing is pending concept review on November 11.

Garanti Bank is Turkey’s second largest privately-owned bank in terms of total assets.

($ = 0.788 euro)

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