Panelsan secures loan from EBRD, TSKB

LONDON

The European Bank for Reconstruction and Development (EBRD) said yesterday that it is facilitating access to finance for insulation panels producer Panelsan through a risk-sharing facility with Türkiye Sinai Kalkinma Bankasi (TSKB), the Industrial Development Bank of Turkey.

Under the EBRD’s Risk Sharing Framework (RSF), TSKB will lend 1.5 million euros 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.

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, the EBRD said in a statement.

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.

To date, the EBRD 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, the development bank said.