TSKB Provides USD 200 Million from Japan Bank for International Cooperation (JBIC) to Earthquake-Affected Companies for Green Recovery

TSKB has signed a new loan agreement for the amount of USD 200 million with the Japan Bank for International Cooperation (JBIC) to finance the renewable energy, energy efficiency, water and waste management as well as advanced technology supported energy efficiency investments of the firms affected by the earthquakes in the eastern and southeastern regions of our country in February 2023. This agreement is signed with the guarantee of the Republic of Türkiye Ministry of Treasury and Finance and it will provide an important support to the qualified development of our country through green recovery investments.

TSKB (Industrial Development Bank of Türkiye) has signed a USD 200 million funding agreement with the Japan Bank for International Cooperation (JBIC) which continuously supports sustainable investment projects for Türkiye’s qualified development. This agreement will provide financing for renewable energy, energy efficiency, water and waste management and advanced technology supported energy efficiency investments for the companies affected by the earthquakes in the eastern and southeastern regions. The loan is extended under the repayment guarantee of the Republic of Türkiye Ministry of Treasury and Finance and also Sumitomo Mitsui Banking Corporation (SMBC) supported the loan as the largest participating bank followed by JBIC as the facility agent.

TSKB signed its first loan agreement with JBIC in 2000 to strengthen the companies directly and indirectly affected by the 1999 earthquake. The second loan agreement between TSKB and JBIC was signed for the amount of USD 150 million in 2015 to contribute the renewable energy and energy efficiency investments aimed at reducing greenhouse gas emissions in Türkiye. The loan agreement which is subsequent to the second one was signed for the amount of USD 220 million in 2022.

Under this new agreement signed by TSKB and JBIC, TSKB will contribute to the recovery, rehabilitation and reconstruction works of companies affected by earthquakes in line with the principles of inclusiveness and green transformation. TSKB, whose loan portfolio consists of UN Sustainable Development Goals (SDG) related investments by around 90%, will directly contribute to four of the SDGs with this USD 200 million fund from JBIC:

• SDG 8: "Decent Work and Economic Growth" 

• SDG 9: "Industry, Innovation and Infrastructure"

• SDG 13: "Climate Action"

• SDG 17: “Partnerships for the Goals”

TSKB CEO Murat Bilgiç: "We have achieved another very meaningful collaboration with JBIC through our fourth loan agreement with the focus on 'green recovery"

Stating that they have signed another meaningful funding agreement for the recovery of companies affected by earthquakes under their long-standing partnership with JBIC, TSKB CEO Murat Bilgiç said: "Following the earthquake disasters in February 2023, we continue to take steps to ensure recovery in the region and to launch new investments under the principles of sustainability and inclusiveness. In particular, investments in renewable energy, energy efficiency, water and waste management, and advanced technology supported energy efficiency investments are of great importance for the rapid recovery of our earthquake-affected provinces and the acceleration of their development. We will contribute to restoring the competitiveness of these provinces and increasing employment through investments boosting productivity, taking into account the recovery strategy for the manufacturing industry in the Türkiye Earthquake Recovery and Reconstruction Assessment (TERRA) Report. Moreover, as we have indicated in our research report published after our field visit to the earthquake region and as communicated to our stakeholders, share of the provinces in the earthquake zone in the country's gross domestic product reaches 13%, and it is worth to say that the impact of the fields of activity with varying weights on the Turkish economy together with their backward-forward linkages is more than what the numbers indicate.

Under the guarantee of our Ministry of Treasury and Finance, we have achieved another very meaningful collaboration with our valuable partner JBIC, through our fourth loan agreement focused on 'green recovery'. In this context, we would like to extend our sincere thanks to the Ministry of Treasury and Finance for their valuable support.

The funding we have secured from international development finance institutions following the devastating earthquakes renew our hopes for a sustainable future and reaffirm the confidence to our Bank and our country."

JBIC Director General Ryuta Suzuki: "This loan agreement is a symbol of togetherness of our two countries and two institutions"

Commenting on the funding agreement signed with TSKB, JBIC Director General Ryuta Suzuki said, "TSKB’s leading role in the efforts towards resilient, inclusive, and sustainable reconstruction of the disaster-affected areas is extremely remarkable. As a longstanding partner of Türkiye, it is our great honor and pleasure to participate in this initiative together with TSKB. Türkiye and Japan share a long history of supporting each other in difficult times. This loan agreement is a symbol of togetherness of our two countries and two institutions."