- IFC is investing in country’s first blue bond issuance by QNB Türkiye, and investing in bank’s green bond issuance, to boost climate finance market.
- Proceeds from blue bond earmarked for bolstering Türkiye’s blue economy, including sustainable fisheries and sustainable tourism.
- Green bond will support renewable energy and energy efficiency projects.
Istanbul, Türkiye, October 17, 2024—IFC is investing in Türkiye’s first blue bond issuance by QNB Türkiye, alongside the bank’s green bond issuance, to boost the country’s climate finance market. The landmark project aims to help address climate change impacts in Türkiye and bolster the blue economy.
The two issuances comprise up to $25 million in a blue bond, in which IFC is the sole investor, and up to $100 million in a green bond, in which IFC and the European Bank for Reconstruction and Development (EBRD) are investing equal amounts (up to $50 million each). Both bonds will have a five-year tenor with a two-year grace period.
“We are proud to lead Türkiye’s first blue bond, alongside an additional green bond issuance, in partnership with IFC. This landmark transaction underscores our commitment to safeguarding vital water resources and supporting the transition towards a sustainable blue and green economy,” said Ömür Tan, CEO of QNB Türkiye. “Our collaboration with IFC reinforces QNB Türkiye’s leadership in sustainable finance and highlights our role in driving climate-smart investments that create lasting economic and environmental value.”
The project is expected to enhance access to climate finance for both small and medium enterprises (SMEs) and larger companies in Türkiye. It will support green projects in renewable energy and energy efficiency to help reduce the country’s carbon footprint, as well as blue projects supporting biodiversity, sustainable fisheries, and sustainable tourism, sectors crucial for Türkiye’s coastal economy.
“Improving access to climate finance is essential to support Türkiye in tackling climate change and driving sustainable growth,” said Momina Aijazuddin, IFC Regional Industry Head, Financial Institutions Group for the Middle East, Central Asia, Türkiye, Afghanistan, and Pakistan. “We hope this first blue issuance, alongside the green bond, will help foster innovation, support businesses in adopting sustainable practices, and encourage other financial institutions to follow suit.”
To strengthen QNB Türkiye’s sustainable finance capacity, IFC also supported the bank in refining its definition of blue finance, identifying blue assets in its portfolio according to IFC Guidelines for Blue Finance, and enhancing its compliance with environmental and social standards.
IFC has been at the forefront of mobilizing climate finance in Türkiye, providing innovative financial solutions to address both green and blue economy needs, help the country achieve net zero by 2053, and build a more resilient financial system. Türkiye represents IFC’s third-largest country exposure globally, with a committed portfolio of close to $5.2 billion as of September 2024.