Istanbul, Turkey, May 13, 2016
—
IFC, a member of the World Bank Group, invested USD 50 million in the Industrial Development Bank of Turkey (TSKB)’s, the country’s first privately-owned development and investment bank, green/sustainable bond issue. This is the first green/sustainable bond issued from Turkey in international debt capital markets.
The issue size of the bond is $300 million. Those proceeds will be used for private sector investments in renewable energy, energy efficiency, and other areas that reduce greenhouse gas emissions.
“TSKB continues to enhance its focus on investing in sustainable growth, energy and resource efficiency, and renewable energy investments,” said Suat Ince, CEO of TSKB. “We are very proud to be the first bank to open up a new market in Turkey by issuing the country's first ever green bond.”
Green bonds have been gaining popularity as an effective instrument for raising private capital for climate change mitigation and adaptation efforts. IFC’s green bond program helps funnel private investment into low-carbon projects and, as of December 2015, IFC had issued close to $5 billion in green bonds.
“Helping Turkey reach its climate change goals is a priority for IFC,” said Manuel Reyes-Retana, IFC Regional Head of Financial Institutions Group in Europe, Middle East, and North Africa. “As a pioneer in developing the green bonds market globally, we welcome our long-term partner TSKB's efforts to launch the first ever green bond in Turkey and hope this will set an example and encourage other institutions to participate in this market."
Climate change is a fundamental threat to economic development; the recent
Shockwaves
report by the World Bank estimates that without immediate intervention in emissions reductions by the international community, climate change could result in an additional 100 million people living in extreme poverty by 2030. The World Bank Group has pledged to step up its investments in climate to 28 percent of annual commitments and leverage an additional $13 billion of private sector co-financing by year 2020.
IFC has supported private sector development in Turkey for 50 years. Turkey is the third-largest country exposure for IFC globally. IFC has invested $4 billion in private sector projects in the country thus far, in line with the World Bank Group’s Turkey Country Partnership Strategy for fiscal years 2012 to 2016.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with more than 2,000 businesses worldwide, we use our capital, expertise, and influence to create opportunity where it’s needed most. In FY15, our long-term investments in developing countries rose to nearly $18 billion, helping the private sector play an essential role in the global effort to end extreme poverty and boost shared prosperity. For more information, visit
www.ifc.org
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About the Industrial Development Bank of Turkey (TKSB)
TSKB is a leading provider of sustainable energy finance. It is Turkey’s first carbon neutral bank and the first to receive ISO14001 certification for its environmental management system. TSKB is also the three-time winner of the FT/IFC Transformational Business award for “Sustainable Bank of the Year” in Southern Europe.
