Leading environmental banking since its establishment, VakıfBank has a systematic conscious that environmental performance of enterprises resulting from their all activities should be controlled and improved.
Accordingly, the Bank presents innovative products which are developed within its body in order to preserve the environment under the name of environmental banking. These products are Ecological Technology Package for saving operating expenses by investing on energy saving technology products and Ecological Auto Loans that allow lower fuel consuming and lower carbondioxide emission vehicle lending. Another package is Ecological Isolation and Saving Package that enables energy and water saving and finance opportunity at convenient time and conditions. Ecological SME Loans and Ecological Tourism Loans directs enterprises to environmental consciousness raising investments.
In the scope of environmental banking, project finance support is provided at appropriate term and conditions to investment projects on renewable energy technologies and finance opportunity of investments on environment friendly alternative energy resources which renew themselves constantly such as sun, hydroelectric, geothermal and biological processes are offered in line with the needs of the company.
Moreover, fundings with a reasonable cost from international institutions are achieved to prevent greenhouse gas emissions, to decrease fossil fuel usage and to reduce the energy costs. In 2010, energy efficiency and renewable energy investments of Small and Medium Size Enterprises were financed up to 100% of total amount by means of TurSEFF I (Turkey Sustainable Energy Financing Facility) provided by European Bank for Reconstruction and Development (EBRD). As TurSEFF loan has been a success in energy efficiency projects for VakıfBank, in 2013 TurSEFF II loan financed by European Bank for Reconstruction and Development with co-financing of European Investment Bank (EIB) was put into service. The Bank achieved following titles regarding TurSEFF loans:
- “Sustainable Energy Finance Perfection Award” given by EBRD,
- The bank to grant the first loan within the shortest time in 2010 among 14 countries in which TurSEFF project continued,
- First bank to grant the first EBRD’s loan to photovoltaic sector,
- The bank provided finance for LED lightening project which was rewarded by Ministry of Energy and the bank financed energy performance guaranteed contract system (EPC),
- First bank to lend the first loan of 2013 TurSEFF II.
In 2011, within the scope of Securitization loan facility, funding source obtained through MidSEFF Mid-Size Sustainable Energy Financing Facility supported by EBRD in order to finance mid-size renewable energy investments. Conformably, to support investments in the same field, an agreement has been signed with EIB as part of the Climate Change Project. Projects that will be funded as part of these above mentioned should contribute to:
- Producing energy from renewable sources,
- Increasing energy efficiency of industrial companies,
- Producing energy from industrial wastes
Projects that have been financed under the loan provided in 2011 and that are not completed yet have still been monitored.
In 2012, a new loan was provided to finance micro, small and medium size enterprises engaged in agriculture and agricultural products in primary development regions within the scope of “TurAFF – Turkey Agribusiness SME Financing Facility” which is also supported by EBRD. The purpose of the funding that can be lend as both working capital and investment loans is to support the entrepreneurs who produce and provide agricultural and animal product input, process primary and secondary food and beverages, package, deliver and do wholesale and retail trade with the loan. The fund that was disbursed to VakıfBank within the scope of the project has been fully allocated as of January 2014.
In 2013, three state banks were granted loans equally in the scope of Energy Efficiency Project in SMEs through World Bank and in addition to this loan, a grant which was shared among three state banks through Ministry of Energy and Natural Resources was allocated from Global Environmental Facility (GEF) with the purpose of education and technical support to Energy Efficiency Project. 50% of aforesaid grant will be used for technical consultancy and the rest will be used as the collateral of the projects will be implemented by Energy Service Companies. Allocation of the loan continues under the project.
Within the scope of the securitization loan agreement that was signed in December 2014, a fund in the amount of EUR 75 million has been disbursed to the Bank as a continuation of TurAFF loan and allocations have not begun yet.