EUR 100 Million Climate Finance Loan from KfW to TSKB
The Republic of Türkiye has signed a new loan agreement with the German Development Bank (KfW), for EUR 100 million under the "Climate Finance Loan" to be channeled to TSKB Thanks to this fund, the bank will support investments in renewable energy, energy storage systems, energy efficiency and e-mobility. In addition to the loan amount extended, TSKB who aims to accelerate the financing of climate-oriented investments in Türkiye, also received a grant of EUR 10 million from the International Climate Initiative (IKI).
Continuing to carry out meaningful efforts to combat the global climate change and its impacts, the Republic of Türkiye has signed a "Climate Finance Loan" agreement amounting to EUR 100 million with the Kreditanstalt für Wiederaufbau (KfW) to be channeled to Industrial Development Bank of Türkiye (TSKB). This loan is the first transaction under the memorandum of understanding signed in 2022 between the Republic of Türkiye and development partners, including KfW, to help Türkiye achieve the Sustainable Development Goals and fulfill its international commitments under the Paris Climate Agreement. This loan will be provided from KfW to the Ministry of Treasury and Finance of Türkiye, then channeled from the Ministry to TSKB. Through this loan, TSKB will contribute to the financing of climate-focused investments in Türkiye and will support investments in renewable energy, energy storage systems, energy efficiency and e-mobility.
As part of this loan, TSKB has received a grant of EUR 10 million from the International Climate Initiative (IKI) and aims to make a positive impact on innovative investment projects as well as contribute to the Bank's internal capacity building activities on climate risk management.
"We continue to make concrete contributions to Türkiye's combat against climate change"
Explaining that they are delighted to complete a new funding agreement with KfW in the field of climate finance, TSKB's CEO Murat Bilgiç stated:
"We continue to make concrete contributions to Türkiye's efforts to combat climate change. Mitigation of risks arising from climate change, climate adaptation and climate technology investments will always remain among our focus areas. Today, the ratio of loans through which we contribute to climate and environment focused UN Sustainable Development Goals stands at 60 percent. As TSKB, we have integrated the measurement of climate risks into our loan evaluation and monitoring processes, and we continue to work on the financial quantification of these risks. Aiming to integrate climate-related risks and opportunities into all business processes, TSKB sees the dedicated efforts against the climate crisis as a key part of its mission. Through the EUR 100 million loan and the EUR 10 million grant from KfW, we will carefully select investments that will support Türkiye's combat against the impacts of the climate crisis and offer financing opportunities. We would like to express our gratitude to Ministry of Treasury and Finance of the Republic of Türkiye and KfW who has been supporting us in this field through our long-standing relationship. We will continue to support to the common future of our world by reinforcing our existing relationships through our global collaborations. In addition, we are working towards permanent solutions in line with the development banking mission for the needs we have identified through our visits to the region affected by the earthquake disaster in order to contribute to the reconstruction and strengthening of economic activities in the region."
