TSKB obtains $155 mln World Bank loan for Green Fund

ISTANBUL

The Industrial Development Bank of Türkiye (TSKB) has announced that it obtained a $155 million loan from the World Bank, with the guarantee of the Treasury and Finance Ministry, to establish the Türkiye Green Fund.

The Türkiye Green Fund, breaking ground as the first venture capital investment fund financed by loans, both in Türkiye and in the world, is dedicated to reducing emissions and fostering inclusive transformation, the bank said in a statement.

With a roadmap prioritizing climate risk management, it is poised to make a substantial impact on Türkiye’s 2053 Net Zero target, it added.

“Through the Türkiye Green Fund, our objective is to play an effective role in the green transformation journeys of businesses in our country, enhance the diversity, scale, and multiplier impact of funds for climate finance via capital markets,” commented Murat Bilgiç, the CEO of TSKB.

The Türkiye Green Fund is anticipated to play a pivotal role in contributing significantly to Türkiye’s objectives outlined in the Nationally Determined Contribution, according to the statement.

Within the scope of the project, which will mobilize the contribution of the private sector as well as the public sector in meeting the current financing deficit in Türkiye, beneficiary companies are provided with a balanced level of indebtedness and strategic growth opportunities through equity investment, it said.

Poised to foster the growth of capital markets, the Türkiye Green Fund aims to achieve a total equity amount of $405 million, which includes $100 million at the fund level and $150 million at the company level, in addition to the World Bank loan of $155 million.