TSKB Obtained USD 123 Million of Sustainability-Linked Syndicated Loan

19 July 2023
- 3 min. Read

TSKB has signed its fourth sustainability-linked syndicated loan agreement. Through the syndicated loan, renewed with a roll-over ratio of 113 percent, TSKB seeks to support the redevelopment of earthquake zones, finance renewable energy projects, and invest in sustainability-focused intellectual capital within the Bank.

TSKB (Industrial Development Bank of Turkey) has successfully rolled over its sustainability-linked syndicated loan for the fourth time, with differentiated criteria this year. On July 19, TSKB successfully signed a USD 123 million loan agreement with the participation of 9 banks from Europe, the Americas, Asia, and the Middle East, including 2 new participants, with a roll-over ratio of 113 percent.

The Coordinator of the loan is Commerzbank AG, with ING Bank N.V. acting as the Sustainability Coordinator. Participants of the loan include ABC International Bank Plc, BNP Paribas, Citibank N.A., Commerzbank AG, ING Bank N.V., Standard Chartered Bank, Sumitomo Mitsui Banking Corporation, Raiffeisen Bank International AG and Atlantic Forfaitierungs AG. The syndicated loan, comprising two tranches of USD 17.5 million and EUR 94 million, has a maturity period of 367 days.

TSKB CEO Murat Bilgiç: “In the second century of our Republic, we remain resolute in our commitment to take bold steps towards the green transformation and sustainable future of our country.”

Stating that they are pleased to sign the fourth syndicated loan agreement indexed to the sustainability criteria, TSKB CEO Murat Bilgiç said, “Through this new funding we have secured with the participation of international financial institutions, we will continue to take concrete steps towards the sustainable development and the prosperity of our country. We consider it important to amplify our continued support towards the recovery of the earthquake zones under this agreement. Another top priority will be addressing the adverse effects of climate change, which are now affecting us all firsthand. The occurrence of these extreme natural events reaffirms the utmost importance of effectively managing climate risks and seizing opportunities, which have long been fundamental strategic priorities for our Bank. At TSKB, we are steadfastly progressing with clear and transparent objectives outlined in our climate roadmap. We have recently reinforced our dedication to achieving a Net Zero future by publicly disclosing our long-term emission targets, which have been approved by the Science Based Targets initiative (SBTi). We make significant contribution to the sustainable and inclusive development of our country, as demonstrated by our 91 percent Sustainable Development Goals (SDG)-linked loan portfolio, with 60 percent of it dedicated to climate and environment-focused initiatives. We are delighted to generate additional funds, particularly for the financing of renewable energy projects, through the syndicated loan we have signed. As a Bank with ‘sustainability’ at the core of its value creation model, we credit the exemplary practices achieved in our sector to our teams, who all embrace a green-collar approach in their work. We place great importance on supporting the knowledge and skill development of our colleagues, enabling us to continue taking effective steps we take for the planet and our country. We consider it important to invest in our intellectual capital while concurrently supporting regional development and facilitating the green transformation of our country through this loan.”

Referring to the other fund agreements the Bank has signed since the beginning of the year, Bilgiç concluded his words as follows: “In April, we signed a EUR 100 million climate finance loan agreement with the German Development Bank (KfW). In May, we signed a EUR 25 million renewable energy and energy efficiency loan agreement with the Austrian Development Bank (OeKB). In the second century of our Republic, we remain resolute in our commitment to take bold steps towards the green transformation and sustainable future for our country through the qualified funds we have secured and will continue to secure from international development finance institutions and global financial institutions.”