Turkey-based development and investment bank Türkiye Sınai Kalkınma Bankası (TSKB) will lend €15.4 million to Turkish metal casting company Kutes in order to support its investment in solar energy and sustainability efforts through a risk-sharing agreement with The European Bank for Reconstruction and Development (EBRD).
According to its statement, EBRD will undertake 50 percent of TSKB’s credit risk on the transaction. With the support of the loan, Kutes will build 26-megawatt solar power plants in Kırklareli and Edirne. The project will meet the energy requirements of the company’s casting plant and reduce its electricity consumption by more than 80 percent.
The risk-sharing agreement is one of three core financial instruments of the EBRD’s Small Business Initiative, which is dedicated to supporting and developing local private companies.