Turkish company Denizleasing secures €27.5 million from responsAbility

In a significant move to address the financing gap between Small and Medium Enterprises (SMEs) in Turkey and the country's broader climate finance objectives, the leasing market is being viewed as a promising solution. This perspective is shared by development finance institutions (DFIs) and impact investors, who find the Turkish leasing market attractive due to its growth potential compared to other markets, and its development and climate impact.

Swiss-based asset manager responsAbility has recently invested €27.5m in Turkey's Denizleasing, a move that underscores this growing interest. The International Finance Corporation (IFC) has also joined the fray, announcing a $75m loan agreement for Denizleasing in June. However, the speaker from the IFC associated with this financing agreement for Denizleasing could not be explicitly identified in the available search results.

Denizleasing, one of Turkey's largest private leasing companies and a part of the DenizBank Group, will use this funding to bolster climate-positive lease financing for the SME sector in Turkey. Part of the funding is being directed towards green leasing solutions, such as small- to mid-scale solar photovoltaic systems and energy efficiency technologies.

The investment in Denizleasing is not an isolated incident. In August, responsAbility was part of an investor group that provided a €130m syndicated loan facility for another Turkish leasing company, QNB Leasing. The financing for QNB Leasing also supported small firms focusing on women, youth, and rural development, and was in support of clean energy projects.

The asset manager will also provide technical assistance to help Denizleasing bolster its environmental and social management systems. This move is expected to allow Denizleasing to build on its key role in enabling SMEs in Turkey to access finance.

The leasing market in Turkey is being recognised for its potential to contribute to the country's climate finance objectives. By effectively bridging the financing gap between SMEs' capital needs and the country's broader climate finance objectives, the leasing market is being acknowledged for its ability to make a significant impact.

This investment in Turkey's leasing market is a testament to the growing recognition of the sector's potential to drive sustainable development and climate finance in the country. As more investments flow into the sector, we can expect to see more climate-positive initiatives from Turkish leasing companies in the future.