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In Turkey, DenizBank is committed to the climate and earthquake victims, with the support of Proparco
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Proparco provides Denizbank with a senior debt up to USD 70 million, as part of a $610 million equivalent Diversified Payment Rights (DPR) issuance. The bank will thus be able to participate in the reconstruction of the regions affected by the earthquake of February 2023 and contribute to energy transition projects.
Turkey's fifth-largest private bank in terms of consolidated assets, Denizbank will allocate a significant part of this financing to develop a portfolio of climate co-benefit projects, including wind, solar and energy efficiency projects.
20% of the funds will be dedicated to supporting projects in areas affected by the earthquake, which hit Turkey in February 2023 and caused around 50,000 victims. The criteria of the selected projects for this portion of funding will largely align with the European Bank for Reconstruction and Development’s (EBRD) Disaster Response Framework, which lays the groundwork for effective financing in the region.
Proparco financing is part of a DPR (Diversified Payment Rights) issuance in which other investors, including the EBRD and the IFC (International Finance Corporation), are participating.
This is Proparco’s second operation with DenizBank. A bilateral loan of €45 million, signed in July 2022, targeted the agriculture sector for 40% and - already - climate finance for 60% of the funds.
DenizBank CEO Hakan Ateş stated that: “A significant part of this funding will be extended to the financing of green projects in the fields of renewable energy, energy efficiency. In addition, we will continue to increase our efforts, which we initiated to heal the wounds of our citizens and businesses affected by the earthquake, in order to restore the region after the greatest natural disaster in the history of Turkey, together with this funding.”
“Proparco is proud to join forces with fellow DFIs to support Turkish banking sector via our important partner, Denizbank. This will be Proparco's first participation in a DPR transaction in Turkey, and is consistent with Proparco’s strategy for providing our support to climate finance in Turkey. Additionally, part of the funds will be dedicated to relief efforts for victims of the earthquake.” said Stéphane Froissardey, Regional Director for Turkey, Caucasus, Balkans, and Central Asia at Proparco.