EBRD to loan Turkish bank $58M for low-carbon economy investments

The European Bank for Reconstruction and Development (EBRD) announced a €53.5 million ($58 million) loan on Friday to a Turkish industrial development bank to boost green investments.

In a statement, the EBRD said the loan to the Türkiye Sınai Kalkınma Bankası (TSKB) would promote the country's transition to a sustainable, low-carbon, and climate-resilient economy.

The facility consists of concessional financing from the Clean Technology Fund (CTF), along with grants from the CTF and Turkey-EBRD Cooperation Fund.

"Through this loan, TSKB will extend green credit lines to companies to enhance their energy efficiency, renewable energy and climate resilience measures," it said.

The European lender's managing director for Turkey, Arvid Tuerkner, noted that the TSKB would be the first recipient of EBRD funding under its new Green Economy Financing Facility (GEFF) framework.

On top of providing green finance to businesses, the GEFF also aims to improve Turkish financial institutions' corporate climate governance practices and increase the sustainability of their operations, Tuerkner added.

Also commenting on the loan agreement, TSKB CEO Murat Bilgi underlined the importance of the real sector transitioning to sustainable business models to "ensure the effective management of climate-related risks and opportunities."

To date, a total of €2.8 billion in financing has been made available by the EBRD and other international finance institutions through green financing facilities in Turkiye, to be lent for investments in high-performing green technologies.

An additional €1 billion has been obtained in private sector investments, according to the EBRD.