With this fund, which is in line with the Paris Climate Agreement, Turkiye’s renewable energy, energy efficiency, climate change mitigation and adaptation and investments of industries that support these will be financed.
The Industrial Development Bank of Turkiye (TSKB) signed a loan agreement with the Asian Infrastructure Investment Bank (AIIB) in the amount of $200 million on the theme of climate change mitigation and adaptation.
According to the statement made by TSKB, the loan, which is the continuation of the $200 million sustainable energy and infrastructure loan TSKB obtained from AIIB in 2018, was provided under the repayment guarantee of the Republic of Turkiye Ministry of Treasury and Finance.
With this fund, which is in line with the Paris Climate Agreement, Turkiye’s renewable energy, energy efficiency, climate change mitigation and adaptation and investments of industries that support these will be financed.
‘We will focus on projects that reduce the effects of climate change and adapt to these effects’
TSKB General Manager Murat Bilgic, whose views are included in the statement, reminded that they signed the loan agreement provided by the Asian Infrastructure Investment Bank to a bank for the first time in the world, to be transferred to private sector investments, under the repayment guarantee of the Republic of Turkiye Ministry of Treasury and Finance.
Bilgic said:
“Within the scope of this agreement, we financed 6 renewable energy projects with a total installed power of 479.6 MW. With this new agreement, we are entering the second phase of our long-term cooperation with AIIB. With an additional fund of $200 million, we will finance climate investments in a way that will support Turkiye’s route and targets under the Paris Agreement. In these financings, we will focus on projects that reduce the effects of climate change and adapt to these effects. Thus, we will support the transition of our country’s production sector to a low-carbon economy. We see this important agreement as a sign of trust in our Bank and our country, and we are delighted to strengthen our cooperation with AIIB. While climate risks shape our future, as a bank with approximately 93% of its loan portfolio linked to the UN Sustainable Development Goals and 62% of investments focused solely on climate and the environment, our route will continue to be ‘sustainability and inclusiveness’ while keeping the climate ahead.’
Konstantin Limitovskiy, Vice President of AIIB Investment Operations for the 2nd Region, said, “This project, which is carried out under the guidance of AIIB’s Energy Sector Strategy and is in harmony with the four thematic priorities we have determined with the focus of Financing Tomorrow’s Infrastructure, is the continuation of our successful cooperation with TSKB that started with the first phase of the Sustainable Energy and Infrastructure Loan Program in 2018.’
Noting that they aim to transfer at least 50% of the financing they have provided to climate solutions in line with the ambitious climate targets they have set as AIIB, Limitovskiy stated that they are determined to support the members, including Turkiye, to contribute to green goals and thus to the global climate agenda.
Source: AA / Translated by Irem Yildiz