Provision of a senior unsecured loan to Turkiye Sinai Kalkinma Bankasi A.S. ("TSKB"), a joint stock company incorporated in Turkey, in the amount of up to EUR 53.5 million. The loan to TSKB was co-financed by the Clean Technology Fund ("CTF"). The proceeds will be used for financing corporate and residential sectors under the new Green Economy Financing Facility ("GEFF") Turkey framework.
The project aims to support green economy investments including among others energy efficiency, renewable energy and climate resilience measures. Funds may also be on-lent to vendors and producers of eligible material and equipment covered by the Green Technology Selector for Turkey. Cooperation will also be sought with TSKB and sub-borrowers on the mainstreaming of corporate climate governance ("CCG") and gender-responsive on-lending and better integration of climate change and gender equality considerations into TSKB's lending strategies and practices. The loans will be supported by Technical Cooperation ("TC") and by incentive payments, as envisaged by the Green Economy Financing Facility ("GEFF") Framework. Concessional financing will also be available to support TSKB to integrate climate change into their corporate governance approach.
ETI score: 70
The project will contribute to the objectives of GEFF Turkey by supporting the Green and Well-governed TI qualities. It will promote the transition to environmentally sustainable, low-carbon and climate-resilient economies in Turkey, preventing the economy from being locked into carbon-intensive, climate-vulnerable and/or environmentally damaging polluting pathways. It will also contribute to TSKB`s ambitions for implementing specific corporate climate governance practices.
TURKIYE SINAI KALKINMA BANKASI AS
TSKB is a publicly listed private sector development and investment bank in Turkey. Isbank is the majority shareholder with 51.4% stake (including the shares belonging to its subsidiaries), followed by Vakifbank with 8.4% stake. The remaining 40.9% of the shares are publicly traded on Borsa Istanbul. TSKB has c. 1% market share with EUR 5.7bn in total assets, EUR 4.3bn in gross loans and EUR 0.5bn in capital as of YE21.
EBRD Finance Summary
Total Project Cost
The proposed transaction should enable TSKB to access longer-term financing which is essential to finance green economy investments. EBRD offers an innovative green finance instrument that integrates aspects such as climate and ESG risk considerations into the financing structure.
Environmental and Social Summary
Categorised FI (ESP 2019). TSKB is an existing client and has demonstrated compliance with the applicable PRs through its annual environmental and social reporting. TSKB will be required to continue to comply with EBRD's Performance Requirements (PRs) 2, 4 and 9, including the updated exclusion and newly introduced Referral List stemming from ESP 2019; implement the applicable EBRD's E&S Risk Management Procedures for Micro, SME and Corporate Lending and submit Annual Environmental and Social Reports to the Bank.
Technical Cooperation and Grant Financing
GEFF Turkey is supported by a TC programme for a total amount of up to EUR 7.1 million for the engagement of the Facility Consultant and c. EUR 21.5 million concessional co-financing to be provided by the CTF.
Company Contact Information
Meclisi Mebusan Cad. 81 Findikli Istanbul Turkey
PSD last updated
26 Apr 2022
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