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AFD intends to invest in Development and Investment Bank of Turkey’s first ever €100 million sustainable bond
A preliminary protocol of 100 million euros was signed between the Development and Investment Bank of Turkey (TKYB) and Agence Française de Développement (AFD) on November 24th 2021, for the issuance of a €100m bond through a private placement with the AFD. The aim: to support Turkish investments in climate mitigation and adaptation.

The bond will be structured in alignment with TKYB’s Green and Sustainable Bond Framework, which demonstrates the Bank’s continued strong commitment to the United Nations Sustainable Development Goals. The Framework, prepared by TKYB with the support of AFD’s technical assistance prior to the issuance, is aligned with the International Capital Market Association’s Green Bond Principles and the Sustainability Bond Guidelines. TKYB will use the proceeds to finance at least 75% Green projects that contribute to climate mitigation and /or adaptation in Turkey

The project implementation will be also associated with a Technical Assistance Programme dedicated to the elaboration of a gender equality strategy within TKYB.

Mr. Oliver Gauvin, the French General Consul in Istanbul expressed his delight regarding the opportunity for France to support the first sustainable bond issuance of TKYB, which will positively contribute to Turkey’s low-carbon energy transition aligned with the Paris Agreement, recently ratified by Turkey's parliament unanimously.

Mr. Philippe Orliange, AFD Director for Balkans-Middle East-Asia said that AFD’s strategy in Turkey aims to contribute to a more sustainable and inclusive development of the country by providing financing through financial intermediaries and direct investments to support transition to a low carbon economy. He highlighted that the challenge of climate change in Turkey requires such a huge volume of investments that public funds and bank loans will not be enough. Hence, bond markets have an important role to play in mobilizing the financial resources held by public and private investors. “We are pleased to renew our cooperation with TKYB through this new financial instrument, which is complementary to our traditional credit lines. This first sustainable bond issuance will support the Bank’s diversification strategy of funding sources and accompany TKYB’s future access to the green and sustainable bond markets according to its growth ambition in sustainable finance.  It will also at the same time further strengthen its ESG practices and analysis of projects under climate co-benefice and gender lens”.

TKYB CEO, Mr. İbrahim Öztop stated that TKYB today is signing not a term sheet for simply another credit facility; but the term sheet for the first ever eurobond in its 46 years of history. “The diversification that this Eurobond brings will mark another era for TKYB and introduce the Bank to a larger network of investors and creditors in the future. Also this transaction is the second facility of TKYB from AFD, coming after 15 years. We are thankful to AFD for its faith in TKYB and for this very timely support which will contribute to Turkey’s low-carbon energy transition aligned with the Paris Agreement. We hope our collaboration with AFD will go beyond this facility and continue for many years to come.” 

Press contact: Kristin Kopruluyan