TSKB Signed New Loan Agreements Amounting to 100 Million Euros with AFD and CDP as Manager of the Italian Climate Fund to Support the Post-Earthquake Green Economic Recovery in Türkiye

With its inclusive development approach, TSKB continues to support qualified investment projects for the economic recovery of earthquake-affected regions. TSKB, together with the French Development Agency (AFD Agence Française de Développement) and the Italian National Promotional Institution (CDP Cassa Depositi e Prestiti), acting in the name and on behalf of the Italian Ministry of Environment and Energy Security (“MASE”), as manager of the Italian Climate Fund (“the Fund”) signed new loan agreements. The agreements worth 100 million Euros in total and signed on July 17 at TSKB’s headquarters in İstanbul, aim to support the green economic recovery in Turkey after the February 6 earthquakes. The financing provided by AFD and CDP, 50 million Euros each under the “Joint European Financiers for International Cooperation” (JEFIC) framework for the very first time in Türkiye, will support green investments of companies for the benefit of the regions affected by the earthquake and contribute to Türkiye’s climate goals.

Continuing to support qualified investment projects with funds from national and global development finance actors, TSKB is expanding its contribution to the green investments of Turkish companies. On July 17, the Bank signed loan agreements with AFD and CDP, as manager of the Italian Climate Fund, for a total amount of EUR 100 million. The signing ceremony, which took place at TSKB’s Head Office in Istanbul, was attended by the Ambassador of Italy in Türkiye, Giorgio Marrapodi, and the Consul General of France in Istanbul, Olivier Gauvin. The agreements, signed under the Joint European Financiers for International Cooperation (JEFIC) framework, aim to support the green investments of local companies for the benefit of the regions affected by the earthquake.

TSKB CEO Murat Bilgiç highlighted that TSKB has taken another significant step in supporting Türkiye’s national climate targets through green investments, and made following remarks about the agreements: “At TSKB, we have been prioritizing our country’s national goals and have been conducting all our activities centered on the principle of sustainability and inclusiveness for many years. Through robust international collaborations, we are enhancing the reach and impact of our efforts towards a sustainable future. We view these significant agreements signed with AFD and CDP, as manager of the Italian Climate Fund, to support green investments for the benefit of earthquake-affected provinces as a concrete result of our solid collaborative efforts. This marks our first loan agreement with CDP and our eighth agreement with AFD, with whom we have successfully executed projects in crucial areas such as support for SMEs, renewable energy, women’s employment, and circular economy since 2005. This agreement is particularly significant as it unites us, AFD and CDP, as IDFC members under a common framework, fostering solidarity and enhancing cooperation for development, which are also key goals of IDFC.”

AFD Funding Reaches EUR 525 million

In cooperation with AFD between 2016 and 2019, TSKB CEO Murat Bilgiç continued: “With our pioneering collaboration on women's employment, we have provided resources to investments made by companies that consider gender equality in the workplace and create opportunities for women's employment for the first time in Türkiye. With the circular economy loan agreement, we signed with AFD in 2022, we have further expanded the scope of our ongoing collaboration. With the 'Green Reconstruction' credit we obtained, we are focusing on financing firms to the benefit of the regions affected by the earthquake. Through this loan, we will be channeling financing to renewable energy, energy efficiency, adaptation, and circular economy investments, with a particular focus on companies affected by earthquakes. While celebrating 20th year of AFD’s operations in Türkiye this year, the total amount of loan agreements secured from AFD, to support strategic development areas in Türkiye has reached EUR 525 million.”

Rémy Rioux, CEO of AFD Group, pointed out that this project is the first JEFIC cofinancing between AFD and Cassa Depositi e Prestiti worldwide : “Signing today in Istanbul the project agreements with TSKB holds even greater significance since TSKB has been our longest-standing partner in Türkiye, with our initial operation approved in 2004. Twenty years and more than 500 million euro of innovative projects later, we are very proud to continue our partnership, this time to help rebuild the earthquake region. TSKB has consistently demonstrated its ability to meet challenges and support clients’ needs with high climate standards. This JEFIC cofinancing Credit Facility will fund green investments to improve productivity, resilience and efficiency of existing and new facilities.”

First Loan with Italian Climate Fund Resources managed by CDP targets Climate Change Mitigation

Bilgiç stated that the EUR 50 million loan will be provided through the Italian Climate Fund, marking the first collaboration between TSKB and CDP, adding, “Established in 2022 by the Italian Government, the Italian Climate Fund aims to bolster the global effort against climate change by offering climate finance to OECD countries and developing nations. The loan agreement signed between TSKB and CDP, is among the first projects to be financed under this Fund. Furthermore, the implementation of this agreement under the JEFIC initiative constitutes a first in Turkey. Building on this precedent, we hope to see many more financing agreements under this framework in our country. Through this loan, we will support clean energy investments of companies that will contribute to the green transformation of the region, thereby aiding Türkiye’s post-earthquake green economic recovery and reconstruction process.”

Paolo Lombardo, Director of International Development Cooperation CDP: “This initiative represents a significant milestone in our commitment to supporting green projects and sustainable development. We are confident that the resources of the Italian Climate Fund will help partner countries achieve their climate goals, promoting investments that not only mitigate environmental impacts but also improve local socio-economic conditions. With this intervention CDP demonstrates its commitment to supporting sustainable development at the international level, also thanks to collaborations with new partners like TSKB, for a greener and more resilient future”.