DEG, the private-sector investment arm of German development bank KfW, has provided a $45 million senior loan to Türkiye’s Yapi Kredi Leasing to support green and blue economy financing for small and medium-sized enterprises.
The five-year facility, which includes a one-year grace period, will be used to finance climate-smart SME projects across Türkiye, according to project document seen by DevFiNews.
At least 15% of the loan will be set aside for blue economy projects, including investments aimed at reducing ocean plastic pollution, supporting marine ecosystem restoration and promoting eco-friendly tourism.
The transaction gives Yapi Kredi Leasing access to longer-term funding at a time when such capital remains scarce in Türkiye, where tight monetary policy and high inflation have constrained financing conditions for companies.
Yapi Kredi Leasing, formally Yapi Kredi Finansal Kiralama A.O., was established in 1987 and merged with Koç Leasing in 2006.
The company provides leasing solutions for machinery and equipment to SMEs and corporates and has been the market leader in Türkiye’s financial leasing sector for more than a decade.
DEG said the loan will allow the company to on-lend to SMEs investing in sustainable sectors, including renewable energy and energy-efficiency equipment.
The leasing sector is viewed as a practical channel for climate finance because it directly funds machinery, equipment and industrial assets. F
or SMEs, leasing can also reduce the upfront cost of acquiring energy-efficient equipment or renewable energy systems.
The financing comes as Türkiye seeks to reshape its energy mix by reducing dependence on imported gas and increasing renewable energy capacity.
The country will need an additional $68 billion in investment between 2022 and 2030 to significantly reduce greenhouse gas emissions and meet its climate goals, according to the Türkiye Country Climate and Development Report.
The loan also reflects a broader push by development finance institutions to work through local financial intermediaries to expand climate finance to smaller businesses, which are often difficult for international lenders to reach directly.
By backing Yapi Kredi Leasing, DEG is channelling long-term capital into real-economy investments while supporting climate-linked lending through Türkiye’s leasing market.