“Turkiye Green Fund” will be established to finance the green transformation

Minister of Treasury and Finance Mehmet Simsek announced that they will establish a new fund called “Turkiye Green Fund” to finance green transformation activities.

Minister of Treasury and Finance Mehmet Simsek said that they continue to develop new projects in close cooperation with the World Bank.

In this context, Simsek pointed out that the $155 million loan to be provided to Turkiye Industrial Development Bank Inc. for the Green Finance Project was approved by the World Bank, and noted that they will implement a new fund in the country within the scope of the project.

Financing will be provided to green and innovative transformation companies

Simsek stated that the project aims to provide green financing to businesses, encourage investment in green technologies and diversify the financial sector, and said, “We are establishing a venture capital investment fund called the Turkiye Green Fund. The fund will provide equity financing to green and innovative transformation companies.”

Informing that the fund will be subject to the Capital Markets Board legislation, Simsek stated that the World Bank loan will also constitute a resource for the fund. Simsek said, “With the leverage effect of the $155 million loan provided by the World Bank, it is aimed to provide resources to the fund from other investors and to increase the size of the fund in the following period.”

“A sign of trust in Turkiye”

Minister Simsek, drawing attention to the importance given by international organizations to Turkiye, said:

“The financing facility provided by the World Bank to our country reached a record level of $3.3 billion in 2023. This is the most concrete example of the World Bank’s trust and support in our country’s development agenda and economic program.”

Simsek added that the World Bank increased the amount of resources for Turkiye to $35 billion with an addition of $18 billion and that the use of this resource will be in the next 3 years.

Source: Trthaber / Prepared by Irem Yildiz

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