TSKB Signs a USD 200 Million Loan Agreement with Asian Infrastructure Investment Bank
TSKB signed a new loan agreement amounting to USD 200 million with the Asian Infrastructure Investment Bank (AIIB). Standing out with its climate-oriented banking strategy, the Bank will continue to support the financing of Türkiye’s climate change mitigation and adaptation investments in line with the Paris Climate Agreement under this loan from AIIB.
TSKB (Industrial Development Bank of Turkey) signed a USD 200 million loan agreement with the Asian Infrastructure Investment Bank (AIIB) on climate change mitigation and adaptation. This loan is the continuation of the USD 200 million Sustainable Energy and Infrastructure loan which TSKB obtained from the AIIB in 2018. Through this new fund, which is secured under the repayment guarantee of the Republic of Türkiye Ministry of Treasury and Finance, and is in line with the Paris Climate Agreement, TSKB will finance Türkiye’s investments in renewable energy, energy efficiency, climate change mitigation and adaptationas well as respective supporting industries.
TSKB CEO Murat Bilgiç: “As climate risks shape our future, we will continue to set our course toward ‘sustainability and inclusion’ as TSKB”
Commenting on the loan obtained from the AIIB to be transferred to the private sector’s green investments, TSKB CEO Murat Bilgiç said, “In 2018, we signed the first loan agreement with the Asian Infrastructure Investment Bank which was AIIB’s first financial intermediary (FI) loan to a bank globally. Thanks to this project, we financed 6 renewable energy projects with a total installed capacity of 479.6 MW. With this new agreement, we are moving into the second phase of our long-standing relationship with the AIIB. With this USD 200 million fund, we will provide financing for climate investments to support Türkiye’s roadmap to mitigate and adapt to the climate risks align with the Paris Agreement. Through these financings, we will focus on projects that mitigate and adapt to the impacts of climate change. In this way, we will support the transition of our country’s manufacturing sector to a low-carbon economy. We believe that this important agreement is a sign of the trust in our bank and our country, and we are delighted to strengthen our cooperation with the AIIB. While climate risks shape our future, as a bank whose loan portfolio consists of approximately 93 percent UN Sustainable Development Goals-linked investments and 62 percent exclusively climate and environment-focused UN Sustainable Development Goals-linked investments, we shall continue to set our path toward ‘sustainability and inclusion’ while keeping climate at the forefront.”
AIIB Vice President for Investment Operations (Region 2), Konstantin Limitovskiy: “It is the continuation of the successful collaboration between AIIB and TKSB that started in 2018, with the launch of the Sustainable Energy and Infrastructure On-lending Facility Phase 1 project”
Evaluating the agreement, AIIB Vice President for Investment Operations (Region 2), Konstantin Limitovskiy said, “The project is guided by AIIB’s Energy Sector Strategy and is aligned with AIIB’s four thematic priorities to finance Infrastructure for Tomorrow. It is the continuation of the successful collaboration between AIIB and TKSB that started in 2018, with the launch of the Sustainable Energy and Infrastructure On-lending Facility Phase 1 project. AIIB has made ambitious climate targets to achieve at least 50 percent of approved financing to focus on climate solutions, and we are committed to supporting our members, including Türkiye, to achieve their respective green targets and ultimately contribute to the global climate agenda.”
