The World Bank Board has approved a $155 million loan for the greening of firms through equity financing, and mobilized private capital and expanded climate financing in Türkiye’s capital markets.
The funds will be channeled by the Industrial Development Bank of Türkiye (TSKB), which will use them to partially capitalize a Türkiye Green Fund (TGF), the World Bank said in a statement.
The TGF will provide equity financing to green and greening companies.It will be managed by Maxis Private Equity Portfolio Management, one of Türkiye’s largest asset management companies and a Project Implementing Entity under the project.
The project’s total size is expected to reach $405 million by mobilizing private capital in the amount of a combined $250 million at the fund level and investee level, in addition to the World Bank loan, according to the statement.
The project aims to support firms’ decarbonization and investments in green technologies, development of the Private Equity industry through a demonstration green fund, financial sector diversification and development of firms’ access to diversified sources of long-term finance, lowering high corporate leverage, and accelerate financing for the green transition and enhanced climate action.
For Türkiye to reach its intended green objectives, firms need to decarbonize, the statement said.
“At the same time, decarbonization will be important for firms to maintain their growth potential, especially in the wake of the EU Green Deal,” it added.
Source: hurriyetdailynews