TSKB Signs USD 100 Million Financing Agreement with Islamic Development Bank (IsDB) Group for Sustainable Reconstruction in Earthquake-Affected Regions
TSKB, committed to promoting targeted investments for the reconstruction of the earthquake-affected regions, has entered into a new agreement within this purpose. TSKB has solidified its position in the pursuit of ecosystem-restorative recovery by securing a USD 100 million financing agreement from the Islamic Development Bank (IsDB) Group.
TSKB (Industrial Development Bank of Türkiye), dedicated to supporting targeted investment projects through funds from both bilateral and multilateral development finance institutions, has secured a financing agreement of USD 100 million with the Islamic Development Bank (IsDB) Group. This funding is earmarked for the reconstruction of the earthquake-affected regions, aligning with principles of sustainability.
This financing from the IsDBGroup will aim to support private sector investments in 17 provinces officially designated as earthquake-affected by the National Disaster and Emergency Management Presidency (AFAD). This support plays a pivotal role in fostering the sustainable economic recovery of the region.
TSKB CEO Murat Bilgiç: “Our objective is to deliver not just a restorative impact but also to make a significant and sustainable difference in the region”
Indicating that since the inception of their efforts, they have been dedicated to contributing to the socio-economic development of the region and elevating its welfare level in the aftermath of the earthquake disasters in Türkiye, TSKB CEO Murat Bilgiç said, “The earthquake disasters we experienced at the beginning of the year have deeply saddened us all. Following our provision of both in-kind and cash aid to sustain basic life in the region, we actively engaged with the chambers of industry in these provinces, attentively listening to the needs of the local business community on-site. Recognizing the significance of supporting the region’s reconstruction in line with sustainability criteria, we have committed ourselves to intensify our engagements with international development finance institutions in order to secure new financing opportunities. Through the USD 100 million financing agreement we have signed with the IsDBGroup today, our objective is to deliver not just a restorative impact but also to make a significant and sustainable difference in the region. We will contribute to the restoration of competitiveness and growth of employment in these provinces through investments geared to enhance production capacity and productivity by considering the improvement strategy for the manufacturing industry outlined in the Türkiye Earthquake Recovery and Reconstruction Assessment (TERRA) Report.”
“Reconstruction in the aftermath of a disaster should align with the objectives of equitable and low-carbon development”
Highlighting that the repercussions of the earthquake extend beyond the region to impact the entirety of Türkiye, Bilgiç went on to add, “In our research report, disseminated to stakeholders following our on-site visit, we underscored that provinces within the earthquake zone collectively contribute 13% to the country’s gross domestic product. This share is distributed with varying weights across different sectors of economic activity. Moreover, it can be asserted that the influence of these economic sectors on the Turkish economy is more substantial than the figures may imply due to their forward and backward linkages . The recently signed financing agreement, dedicated to the reconstruction of earthquake-affected regions, will additionally foster economic stability within our country. Additionally, at TSKB, we uphold a strong sustainability approach, considering both environmental and social impacts. We firmly believe that reconstruction in the aftermath of a disaster should align with the objectives of equitable and low-carbon development, striking a balance within the secure space between the social floor and the ecological ceiling. We would like to thank our esteemed business partner, the IsDBGroup, with whom we share a common vision, for their meaningful collaboration and the trust they have bestowed upon us.”
“We continue to establish enhanced school libraries and offering scholarship support in earthquake-affected regions”
Bilgiç emphasized their commitment to the region by not only providing financial support for the redevelopment of earthquake zones but also through impactful social responsibility projects, concluding his statement as follows: “The swift recovery and integration of children and young people are critical for achieving social rehabilitation. With this conviction, we initiated the establishment of enhanced school libraries in the earthquake-affected provinces. We intend to bring to fruition the school libraries, inaugurating the first in Adıyaman and planning subsequent openings in Gaziantep and Kahramanmaraş in the days ahead. Our goal is to establish these libraries in a total of 11 provinces by 2025. This year, we are extending support to 100 young individuals from the earthquake-affected regions through our scholarship fund specifically dedicated to female university students. Our commitment remains strong to prioritize students from the region in the upcoming periods.”
Dr. Walid Mohamad Abdelwahab, Director of IsDB Group Regional Hub: “We consider the partnership between the IsDB Group and TSKB to be an exemplary success”
Reflecting on the agreement, Dr. Walid Mohamad Abdelwahab, Director of IsDB Group Regional Hub commented, “As the IsDB Group, we take pride in our development-focused collaboration with the public and private sectors in Türkiye for half a century. This collaboration spans diverse fields including health, education, industry, green transportation, renewable energy and energy efficiency, international trade, banking, and insurance. We consider the partnership between the IsDB Group and TSKB to be an exemplary success. We stand prepared to extend all necessary support to share TSKB’s finance-based development model experience with other member countries within the IsDB Group.”
