- EBRD invests US$ 50 million in QNB Finansbank’s first green bond
- Turkish lender accessing capital markets to fund climate projects
- Promoting green transition and developing capital markets among the EBRD’s top priorities
Reinforcing its position as a leader in green finance and a strong supporter of capital markets, the European Bank for Reconstruction and Development (EBRD) has invested US$ 50 million in a green bond issued by QNB Finansbank, a major Turkish lender.
The bonds have a three-year term, are aligned with the International Capital Market Association’s Green Bond Principles and the Sustainability Bond Guidelines. QNB Finansbank will use the proceeds to finance internationally certified green building projects in its portfolio.
The EBRD’s investment builds on the Bank’s strong commitment to scaling up climate funds in Turkey and the other countries where it invests. The EBRD aims to become a majority green bank and dedicate more than half of its work to climate finance by 2025.
In Turkey, the EBRD is a leading institutional investor and, to date, has invested more than €13 billion in the country through 337 projects, with 96 per cent of these in the private sector. The Bank responded to the Covid-19 pandemic by stepping up its financing in the country to €1.7 billion in 2020 from €1.0 billion in 35 projects in 2019. In 2021, the Bank’s investments will support the country’s post-Covid-19 recovery.