17.05.2016

TSKB issues the first ever green bond out of Turkey

TSKB as a pioneering bank in sustainability, executed a land marking “Green / Sustainable Bond” issuance in the international capital markets. The deal is the first ever public benchmark Green / Sustainable Bond out of Turkey and CEEMEA region. With the 300 million dollars of a size and 5 year tenor REGS/S only transaction, TSKB attracted 13 times demand than the issue size and received the largest ever orderbook for a RegS only transaction out of Turkey. The proceeds will be used for private sector investments in renewable energy, energy efficiency, and other areas that reduce greenhouse gas emissions, as well as socially responsible investments such as healthcare, education, electricity transmission lines and ports. Commenting on the transaction, Suat İnce, the CEO of TSKB, said, “We have been supporting the investments that are aimed at sustainable development projects and also continued contributing to climate projects that are conducted on international platforms. With our leading practices in the field of sustainable banking, we are very proud to be the first bank to open up a new market in Turkey by issuing the country’s first ever Green / Sustainable bond.”

The Industrial Development Bank of Turkey (TSKB), which supports the low carbon economy has led another first in the field of sustainability. With the 300 million dollars of a size and 5 year tenor REGS/S only transaction, TSKB attracted 13 times demand than the issue size and received the largest ever orderbook for a RegS only transaction out of Turkey. The bond issue received a demand of 4 billion dollars from 317 institutional investors in the international markets. 44% of the demand for the bond issue was from the United Kingdom, with 39% being from Continental Europe, 9% from the USA off-shore funds and 8% from Asia and the Middle East. Renewal energy projects providing solutions to climate change, resource efficiency investments and projects directed at social benefit, in areas such as health, education, electricity transmission lines and ports will be financed and/or refinanced with the funds obtained through the bond issue.

Suat İnce: " TSKB continues to enhance its focus on investing in sustainable growth "

Suat İnce, the CEO of TSKB, said, “We are very proud to be the first bank to open up a new market in Turkey by issuing the country’s first ever Green / Sustainable Bond. TSKB continues to enhance its focus on investing in sustainable growth, energy and resource efficiency, and renewable energy and socially responsible investments. We are proud of investing in the future with the issue of Green / Sustainable Bond.”

"The support we extend to sustainable projects is growing incrementally every year”

Suat İnce also stated that the financing support provided in the field of sustainability as TSKB has been growing incrementally every year. Our sustainability projects have surpassed 50 percent of our loan portfolio. With the new funds secured allocated to private sector projects, we are contributing to an 8.3 million tons fall in the annual emissions of carbon dioxide in Turkey.

Global contribution to sustainability and climate change

Getting involved in Borsa Istanbul (BIST) Sustainability Index in 2015, TSKB supported financing activities that are aimed at sustainable development projects and also continued to contribute to climate projects that are conducted on international platforms. Participating in Paris Climate Summit COP21 last year, the Bank gave support to the climate declarations of International Development Finance Club (IDFC) and European Long-Term Investors (ELTI).

Awards to sustainability exercises from different platforms

In 2015, TSKB was awarded CDP-Turkey’s Climate Transparency Leadership Award. While scoring the highest mark in Survey of Transparency in Corporate Reporting with its corporate governance implementations, the Bank became the company with the second-highest rating score in BIST Corporate Governance Index.

Türkiye Sınai Kalkınma BankasıTurkey’s comprehensive environmental portal cevreciyiz.com is supported by TSKB.