International Finance Corporation, member of the World Bank Group, said it invested USD 50 million (EUR 44.7 million) in a green or sustainable bond issue of the Industrial Development Bank of Turkey (TSKB). This is the first such security issued from Turkey in international debt capital markets.
The issue size of the bond is EUR 268.2 million. The 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, chief executive of the country’s first privately-owned development and investment bank.
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 programme helps funnel private investment into low-carbon projects and, as of December, IFC had issued close to EUR 4.47 billion in green bonds.
“Helping Turkey reach its climate change goals is a priority for IFC,” said Manuel Reyes-Retana, the global lender’s 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.”