By Nibal Zgheib
The European Bank for Reconstruction and Development (EBRD) is facilitating access to finance for insulation panels producer Panelsan in Turkey through a risk-sharing facility with Turkiye Sinai Kalkinma Bankasi (TSKB), the Industrial Development Bank of Turkey.
Under the EBRD’s Risk Sharing Framework (RSF), TSKB will lend €1.5 million(US$1.6million) to Panelsan to fund the company’s working capital needs in Turkey. The loan will enable Panelsan to maintain production of its insulation panels amid growing demand in the country for products that improve energy efficiency.
Founded in 2004, Panelsan is one of Turkey’s leading producers of insulation panels. It manufactures sandwich panels of mineral wool and expanded polystyrene and polyurethane, which increase energy efficiency in commercial and residential buildings, as well as roof panels that are required for SPP installation enabling renewable energy production. The firm was recently listed on the Istanbul Stock Exchange following a successful initial public offering in February 2022.
The loan is part of the partnership between the EBRD and TSKB to improve and simplify access to finance for small and medium-sized enterprises across Turkey. Under a risk-sharing agreement, the two lenders provide loans to eligible businesses that they select jointly. Clients can use the loans to finance working capital or capital expenditure.
The EBRD is a leading institutional investor in Turkey and to date has invested more than €16 billion in the country through 373 projects, with the overwhelming majority of those investments in the private sector.
Accelerating Turkey’s transition to a green economy is one of the EBRD’s key priorities in the country.
