TSKB's Asset Size Reaches TL 84,1 Billion
Türkiye Sınai Kalkınma Bankası A.Ş. (TSKB) has announced its financials for the year end 2021. TSKB’s non-consolidated financial statements indicated that the Bank’s total asset size reached TL 84,1 billion. TSKB CEO Ece Börü stated, “We have closed 2021 with strong financial results in line with our expectations despite the continued effects of the pandemic. We have maintained our support to the Turkish economy with our loan disbursements reaching to a total of USD 1 $ billion. We will continue to support our business partners with our green transformation and impact-oriented loan model along with our advisory services in 2022 as well. Under the investment banking activities, we will provide alternative solutions to our customers in the capital markets with new sustainability driven instruments”.
Industrial Development Bank of Turkey (TSKB) has announced its financial results for 2021 and its expectations for 2022. Achieving results in line with predictions, TSKB's total asset size reached TL 84,1 billion in 2021, rising 63,4 percent year-on-year. In the same period, the Bank's total loan portfolio grew by 63,4 percent to reach TL 63,9 billion. In addition, the equity of the Bank increased by 13,7 percent to reach TL 6,9 billion, while the annual net income for the period stood at TL 1.089 million.
Expressing that they monitor the environmental and social impacts of the bank as well as its financial results, TSKB CEO Ece Börü said that “As a bank with a development banking mission, we bring together sustainability-themed funds provided by international financial institutions and global markets with investments that serve the green and inclusive transformation of our country's economy. We are also moving forward with the target of making a qualified contribution to this transformation with our investment banking and advisory services. The UN Sustainable Development Goals (SDGs) determine our course in all our activities. We define and measure the concrete impact we create on each SGD, set targets and report our performance transparently. As a bank, we are aware of the importance of establishing these steps in cooperation with all actors of the economy, while taking concrete steps towards a solution. Hence this is one of our priorities to develop innovative cooperation models that include all our stakeholders.”
We owe our achievements in accessing international funds to our strong technical knowledge and experience in sustainability field.
Emphasizing the growing Environmental, Social and Governance (ESG) interest among investors, Ece Börü said: “We started 2021 with our sustainable bond issuance, which was six times oversubscribed by the demand from international markets. One third of this demand came from ESG investors. We continue to provide financial support for environmental and social development investments with the funding provided by our issuance. We have also renewed our conventional syndicated loan as a sustainability linked facility by linking the margin with sustainability criteria this year. We have successfully achieved these criteria resulting to an improvement in our loan margin. We also improved our ESG Risk Rating Score that we obtain from Sustainalytics and maintained our leadership in Turkey while continuing to be ranked among the best banks globally. Thanks to this more than targeted increase in the ESG Risk Rating, we have managed to improve the margin of our 2020 ESG Linked Loan. Moreover, in the last month of the year, we have signed an agreement with IBRD for USD 150 million, under the Ministry of Treasury and Finance guarantee, proceeds of which to be used for financing geothermal investments of private sector in Turkey. ”
We aim to provide USD 8 billion SDG-linked financing by 2030
Stating that TSKB has contributed to SDGs through its financing activities and that they have recently started to consider business loans in this context, Ece Börü continued her remarks as follows: “Our sustainability-themed funds have exceeded 80 percent of our total funding. The ratio of SDG-related loans we finance in our total loan portfolio is at the level of 90 percent. Contributing to almost all SDGs, currently in our loan portfolio there are 7 goals that stand out. We aim to maintain our SDG-linked loan ratio at least 90 percent by 2025 and to provide USD 8 billion SDG-linked financing by 2030.”
Our focus will continue to be “sustainability” also in investment banking
Ece Börü indicated that TSKB’s Sustainability focus was also integrated to Bank’s investment banking activities and Bank had a very successful year. She continued her statement as follows: “There is a remarkable acceleration in the ESG focus in the equity and bond markets all over the world. As TSKB, we are contributing to green economic transformation by our investment banking services as well as working tirelessly to bring climate-friendly products and companies to the capital markets. Our issuance of the first sustainable and SDG-themed lease certificates in Turkey have attracted great attention on international platforms. Awards from prestigious institutions further increase our motivation for our country to be an ambitious player in sustainable production and finance”
We will continue to enrich our product and service range with innovative ESG products.
Ece Börü underlined that they are moving forward with the aim of constantly increasing the positive impact they have created on the sustainability journey which they started in 1990s, she gave the following information about the future goals of TSKB: “The increasing urgency of green and inclusive transformation all over the world has made our goal of creating a tangible, measurable and scalable positive impact even more important today at every step of the way. In this direction, we will continue to enrich our product and service range with innovative ESG products. In the direction of compliance with The European Green Deal, we expect an increase in our customers' investments in energy and resource efficiency along with circular economy. The renewable energy sector, which is of key importance in the fight against climate change, will be on our radar. Inclusiveness including women employment and finance support to developing regions will also continue to be on our agenda. In 2022, we will continue to be a solution partner for our customers' impact-oriented sustainable transformation investments with our each business line that include our subsidiaries, from the perspective of a consultant bank.”
