Environment

Turkey preparing framework as it may issue its first sovereign green bond

Turkey framework issue first sovereign green bond

Photo: Sulox32 from Pixabay

Published

May 21, 2021

Country

Comments

comments icon

0

Share

Published:

May 21, 2021

Country:

Comments:

comments icon

0

Share

The Turkish government is working on legal requirements that will enable it to raise money by selling debt tied to environmental performance, according to an unconfirmed report. Many domestic companies turn to green bond issuances linked to sustainability measures in order to fund their projects.

The Ministry of Treasury and Finance is developing the legal framework that would make it possible for Turkey to sell sovereign debt securities priced according to results of its social and sustainability projects, an unnamed official told Bloomberg. According to the source, work should be finished by the end of the year and Turkey may immediately issue the first green or social bond package.

Western countries have a highly developed market for environmental, social, and governance (ESG) debt securities. Turkish companies have been issuing green bonds since 2016, when TSKB raised USD 300 million. The five-year sustainability-linked securities are about to reach maturity.

The article adds, quoting Morningstar, that almost 25% of all bonds issued in Europe are tied to environmental performance and projects intended for positive social outcomes. Over half of investments in exchange-traded funds in the continent are directed to ESG-compliant schemes.

Government of Turkey would join growing world market

The European Union is planning to sell green bonds worth EUR 225 billion to partly fund its package for the economic recovery from the COVID-19 pandemic. Turkey has been struggling with deficits and inflation, so the said framework would enable it to tap on the growing global market.

Encouraging green bond issuance is part of ongoing economic reforms in Turkey

President Recep Tayyip Erdoğan said in March that economic reforms would make green bond issuance easier for companies in Turkey. At the time, the sustainability-linked securities accounted for USD 836 million out of USD 3.1 billion in total. The government is counting on investments in green energy, electric mobility and environmental measures.

Arçelik intends to raise EUR 350 million

Istanbul-based Arçelik, owner of Beko and Grundig, is preparing to sell a green bond package worth EUR 350 million with a tenure of five to seven years. The company, part of Koç Holding, said it would use the proceeds for renewable energy, pollution prevention and control, energy efficiency, water and wastewater management and green buildings.

The appliance manufacturer uses 100% green electricity for its Turkey and Romania operations. It aims to apply the rule on a global scale by 2030 and decrease the energy consumption in production by 45% by 2030.

In neighboring Greece, PPC and Mytilineos recently sold green bonds.

Comments (0)

Be the first one to comment on this article.

Enter Your Comment
Please wait... Please fill in the required fields. There seems to be an error, please refresh the page and try again. Your comment has been sent.

Related Articles

bih nova alumina waste energy

BiH’s Nova Alumina to install energy facility fueled by waste to replace coal

13 February 2025 - Aluminum and cement industry supplier Nova Alumina plans to build an energy facility that would use alternative fuels, to replace coal

energy community tnc mapping guide blueprint solar wind environment impact

Guide for mapping areas for solar, wind with minimized impact on environment in Energy Community

12 February 2025 - The secretariat and TNC released a guide for identifying priority areas for renewables that minimizes environmental and social conflicts

serbia ash cement eps coal Lafarge Elixir Group Moravacem

Serbia’s EPS, industry sign contracts on disposal of ash from coal-fired power plants

07 February 2025 - Power utility Elektroprivreda Srbije will sell 30 million tons of ash to Lafarge Serbia, Elixir Group and Moravacem

Floating solar power plants on small water bodies promote greenhouse gas emissions

Floating solar power plants on small water bodies add to greenhouse gas emissions

05 February 2025 - A new study shows that placing solar panels on small bodies of water increases greenhouse gas emissions by nearly 27 percent