Arçelik Receives Green Loan from EBRD

Arçelik CEO Hakan Bulgurlu: "With the green credit provided by EBRD, we will finance our environmental sustainability and R&D projects, implementing important initiatives on our path to achieving net zero emissions across our entire value chain by 2050" Arçelik, which transforms all business processes from product to production with a sustainability focus under its vision of "Respectful to the world, respected in the world," has signed an 8-year green credit agreement worth EUR 150 million with the European Bank for Reconstruction and Development (EBRD), one of the major green finance providers. According to the company statement, Arçelik will use this financing to support sustainability initiatives across various operations and invest in R&D.

First green credit

The credit provided by EBRD will be extended to the industrial sector in Turkey from abroad and carries the distinction of being the first green credit certified by an independent organization in conformity with the international green lending principles published by the Loan Markets Association. The first tranche of EUR 83 million will have "green credit" status according to the Loan Markets Association's Green Credit Principles. With this credit, Arçelik will fund green investments at its Eskişehir, Çayırova, Bolu, Ankara and Central R&D facilities. The remaining EUR 67 million financing will be used for R&D expenses at the Eskişehir Refrigerator Factory and Bolu Cooking Appliances Plant. Arçelik Chief Executive Officer Hakan Bulgurlu, whose views are included in the statement, noted that private companies have important responsibilities in accelerating decarbonization in industry and the transition to a net zero economy, stating: "The business world must set an example for both the world's future and sustainable development. Arçelik is moving forward with confident steps in this direction through green investments. With the green credit provided by EBRD, we will finance our environmental sustainability and R&D projects and implement important initiatives on our path to achieving net zero emissions across our entire value chain by 2050. We hope for the continuation of our harmonious and trust-based cooperation with EBRD." he said.

"We attach great importance to accessing green financing sources"

EBRD President Odile Renaud-Basso, who signed the credit agreement with Arçelik, expressed appreciation for Arçelik's leadership in the green transformation of Turkey's industrial sector, stating: "The company's pioneering experience demonstrates that environmental improvements go hand in hand with profitability and enhanced competitiveness. Today, alongside material, energy and compliance costs, the expectations of customers, investors and society have also increased. For this reason, managing operations in an environmentally and socially responsible manner has become a commercial necessity. We hope more Turkish companies will follow Arçelik's green path. I would like to emphasize that EBRD is ready to finance this transformation." he said.

"Confirms Arçelik is moving in the right direction"

Polat Şen, Deputy General Manager responsible for Arçelik Finance and Treasury, noted that the company is focused on a sustainable financing model and made the following remarks: "As a company that has determined sustainability as a strategic priority, we attach great importance to accessing green financing sources. The support we receive from EBRD is a very valuable step in our sustainable financing journey. This second partnership within two years confirms that our relationship is trust-based and that Arçelik is moving in the right direction. The EUR 150 million credit provided by EBRD will help us become more sustainable and efficient in production." EBRD, one of the leading institutional investors in Turkey, has invested EUR 14 billion in 351 projects in the country so far, with 95 percent from the private sector. EBRD had previously provided Arçelik with EUR 150 million in credit to produce highly energy-efficient refrigerators and dishwashers with strong demand particularly in external markets. With sustainability at the foundation of its operations, half of EBRD's portfolio in Turkey promotes green transformation.

ISTANBUL (AA)

What is green credit?

Green finance is an environmentally friendly fund that unites the financial and business world. It is a field that encompasses commercial and individual consumers, investors, producers and financial lenders. Green financing can be managed by financial incentives and the desire to protect the world or a combination of both. In addition to recycling, it avoids participation in or promotion of any kind of behavior that negatively impacts the environment.