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.
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
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.