TSKB Signs EUR 300 Million New Loan Deal with International Financial Institutions on Partial Guarantee by the World Bank

TSKB has signed a new loan agreement with international financial institutions on partial guarantee by the International Bank for Reconstruction and Development (IBRD), a member of the World Bank Group, and counter-guarantee by the Ministry of Treasury and Finance of the Republic of Türkiye. The EUR 300 million loan deal has been signed with BNP Paribas, Standard Chartered Bank and ING Bank and constitutes the first phase of the project to be developed with IBRD for a total of EUR 600 million. The Financing Adaptation for Growth Project aims to mobilize private capital for sustainable development across Türkiye and strengthen adaptation capacity, particularly through the development of investments to strengthen resilience to lingering climate risks.

TSKB (Industrial Development Bank of Türkiye) has been working for Türkiye's multidimensional development for 75 years. The Bank has launched the Financing Adaptation for Growth Project with the International Bank for Reconstruction and Development (IBRD), a member of the World Bank Group, to improve Türkiye's climate resilience. As part of the project, which was implemented on partial guarantee by IBRD and counter-guarantee by the Republic of Türkiye Ministry of Treasury and Finance, a loan agreement worth EUR 300 million in total was signed with BNP Paribas, Standard Chartered Bank and ING Bank. Having launched on a path to diversify its rich funding structure through innovative products, TSKB goes beyond solely mobilizing private capital with the funds secured and aims to contribute to the development of resilience to climate risks across Türkiye. The loan constitutes the first phase of the project to be developed with IBRD for a total amount of EUR 600 million and will be used to help domestic companies enjoy an increasing momentum in reaching a more resilient, adaptive and competitive structure against climate risks. Continuing to create permanent value and realize innovative and pioneering operations in line with Türkiye's multidimensional development goals and sustainable transformation vision, TSKB will also strengthen Türkiye's overall adaptation capacity to climate risks through the funds it has secured.

Under the Financing Adaptation for Growth Project, a special assessment tool was developed for companies. The tool leverages TSKB's human capital that is powered by TSKB's long-standing development banking experience and pioneering approach in sustainable finance. This tool is the first of its kind in this field and employs a methodology that favors a sectoral and location breakdown to raise awareness about the vulnerability of companies to climate change and to assess their climate adaptation needs. It will also suggest measures and action steps to strengthen overall climate resilience to mitigate the negative impacts of climate change on companies.

TSKB CEO Ozan Uyar commented on the loan agreement. "On our mission to create permanent value for our sustainable future, we have realized projects that shape the multidimensional development journey of our country for 75 years. The Financing Adaptation for Growth Project has been a product of this understanding and is of particular importance as it is the first major climate resilience project implemented at such a scale in Türkiye. The assessment tool we developed using TSKB's qualified human capital is the first of its kind. We believe this project will make a great contribution to our sustainable future by bringing our climate resilience experience and capacity to companies in the green transformation process. We will continue to support the strategic development areas of our country, play an active role in the green transformation of the private sector and strengthen our country's capacity to adapt to climate change thanks to our diverse funding structure that we continuously improve by utilizing various capital elements."

“This project marks a new milestone in our strong partnership with TSKB and Türkiye’s efforts to build resilience against natural disasters and extreme weather events. By mobilizing private capital, we are strengthening communities, protecting jobs, and supporting sustainable economic growth. Together with TSKB, we are demonstrating that building resilience is not only urgent but also commercially viable and scalable.” said Humberto Lopez, World Bank Country Director for Türkiye.

“It has been a privilege to work closely with our stakeholders to deliver lasting value together by facilitating investment in climate adaptation and strategically deploying capital to where it is needed most. We are proud to have led this landmark financing as Global Coordinator, Mandated Lead Arranger and Facility Agent. We look forward to continuing our strong relationship with TSKB and the World Bank Group in the future.” said Faruq Muhammad, Global Head of Development & Agency Finance at Standard Chartered Bank.

“BNP Paribas is proud of the active role played in this first of its kind transaction with TSKB and IBRD. The transaction aims at supporting projects which will strengthen climate mitigation and adaptation, protect and create jobs, and expand competitiveness of Türkiye economy. This partnership not only contributes to preserving and enhancing Türkiye’s growth potential, but also reinforces our bank’s continuing commitment to extend its structuring capabilities to deliver the country’s sustainability through increasing resilience to climate change. It is also another compelling proof of the fruitful, long-lasting relationship BNP Paribas has with TSKB, which allows to further reinforce our robust existing cooperation and continuous support throughout TSKB’s sustainable journey and core missions” said Yasser Henda, Global Head of Export Finance at BNP Paribas.

“We are honoured to support TSKB’s first IBRD partial guaranteed loan focused on climate adaptation, acting as documentation bank. Building on our experience in the Turkish market, this transaction reflects our strong cooperation with TSKB and reaffirms our dedication to promoting sustainable growth and climate resilience.” said Bart Ponsioen, Deputy Global Head of Structured Export Finance at ING Bank.