TSKB and EBRD sign first loan agreement under Green Economy Financing Fund

First loan agreement between TSKB and EBRD under the Green Economy Financing Fund (source: TSKB)

Under the €53.5 million Green Economy Financing Fund provided to TSKB by the EBRD, technologies and services for green transformation throughout Turkey will be financed.

TSKB (Turkish Industrial Development Bank) and EBRD (European Bank for Reconstruction and Development) have signed a new loan agreement that supports the green economy. Under the Green Economy Financing Fund (“GEFF”) totaling €53.5 million provided to TSKB by the EBRD, technology and services for green transformation in Turkey will be financed .

With the loan, it aims to support investments in energy efficiency and renewable energies by companies in the context of the fight against climate change. TSKB previously secured a $220 million loan from the Japan Bank for International Cooperation (JBIC), as we reported.

TSKB Managing Director Murat Bilgic said, “For effective management of climate-related risks and opportunities, the transition of the real sector to sustainable business models, which we call green transformation, is essential. In this transition, impact-focused development finance tools enable a transformation that cuts across all sectors. As TSKB, we play an effective role in this area with our funding models based on sustainability criteria. We are pleased to provide additional resources for sustainable investments with this new loan agreement that we have signed with our esteemed business partner, the EBRD, which reinforces our decisive steps towards the green economy”.

Arvid Tuerkner, EBRD Director in Turkey, said: “As the EBRD, we are very pleased that TSKB is the first recipient of funds under the innovative GEFF framework, which aims to improve corporate climate governance practices in Turkish financial institutions and to increase the sustainability of their operations, in addition to providing green finance to businesses.

Source: TSKB via our Turkish language platform JeotermalHaberler

Leslie M. Gill