Beijing, China, September 28, 2018

AIIB’s First On-lending Facility Supports Renewable Energy Projects in Türkiye

The Asian Infrastructure Investment Bank’s (AIIB) Board of Directors has approved a loan of up to USD200 million to the Industrial Development Bank of Türkiye (TSKB), backed by a guarantee from the Government of Türkiye. The loan will support long-term financing, primarily for renewable energy and energy efficiency projects.

The existence of a long-term financing gap for infrastructure in Türkiye exposes projects to refinancing or rollover risk. This project will help to fill this gap. The investment will also support renewable energy projects that can qualify for the Turkish government’s Renewable Energy Support Mechanism “YEKDEM”, which promotes private sector participation in the renewable energy sector.

"We are partnering with TSKB for our first on-lending program with a financial intermediary in Türkiye because it will help reduce constraints on long-term capital in Türkiye’s banking sector," said AIIB Vice President and Chief Investment Officer DJ Pandian. "This is well aligned with our mission to promote sustainable infrastructure and mobilize private capital investment in Asia."

The loan will finance renewable energy projects, including solar, hydropower, wind, geothermal, biomass and energy efficiency projects, and to a lesser extent in other infrastructure sectors, such as transport, water management and treatment, power transmission and telecommunications.

This is AIIB’s second investment in Türkiye this year, following an earlier USD600 million investment in the Tuz Golu Gas Storage Expansion Project.

"This new investment program will primarily support sustainable energy projects in line with Türkiye’s 2023 goal to alleviate the country’s dependency on energy imports. We also believe TSKB’s robust management procedures will ensure the extension of AIIB’s loan to renewable energy, energy efficiency and other infrastructure projects is of the highest quality," said AIIB Director General for Investment Operations Yee Ean Pang.

The loan provided as part of this on-lending facility will comply with TSKB’s Environmental and Social Management System, which is materially consistent with AIIB’s Environmental and Social Policy and relevant Environmental and Social Standards. TSKB has also developed an Environmental Risk Evaluation Tool for an additional level of screening and categorization of sub-projects to ensure strict environmental and social controls.

More information about the project can be found here.

About AIIB

The Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank with a mission to improve social and economic outcomes in Asia. Headquartered in Beijing, we began operations in January 2016 and have now grown to 87 approved members worldwide. By investing in sustainable infrastructure and other productive sectors in Asia and beyond, we will better connect people, services and markets that over time will impact the lives of billions and build a better future.

 

Logos for Download

AIIB logo is available in JPEG and PDF format.

DOWNLOAD

Media Contact

Lingxiao He

Press Officer

+86 10 8358 0683

SEND AN EMAIL
More News Articles

Beijing, December 06, 2024

AIIB’s First Non-Sovereign-Backed Educational Infrastructure Project Boosts China’s YIST Campus

The Asian Infrastructure Investment Bank (AIIB) has signed a CNY574.728-million loan agreement to finance the expansion of the Yantai Institute of Science and Technology (YIST), a key vocational institution owned by China Education Group Holdings Limited aimed at strengthening vocational education and local workforce development.

READ MORE

Beijing, December 06, 2024

Marvin Taylor-Dormond Steps Down as Managing Director of AIIB’s Complaints-resolution, Evaluation and Integrity Unit

The Asian Infrastructure Investment Bank (AIIB) announces that Marvin Taylor-Dormond, Managing Director (MD) of the Complaints-resolution, Evaluation and Integrity Unit (CEIU), has tendered his resignation to pursue high political office in Costa Rica.

READ MORE

Beijing, November 29, 2024

USD400-Million AIIB Financing to Support Green Development of Hubei Global Air Cargo Logistics Project

The Asian Infrastructure Investment Bank (AIIB) has approved USD400 million in sovereign-backed financing to support the development of the Hubei Global Air Cargo Logistics Project. The initiative aims to establish a state-of-the-art bonded logistics park adjacent to the Hubei Ezhou Huahu International Airport, Asia’s first dedicated freight airport.

READ MORE

Beijing, November 25, 2024

AIIB, AFD Sign Cofinancing Framework Agreement  to Jointly Accelerate Sustainable Development

The Asian Infrastructure Investment Bank (AIIB) and the French Development Agency (Agence Française de Développement or AFD) have signed a strategic Co-Financing Framework Agreement at AIIB’s headquarters. It aims to deepen their collaboration in furtherance of common development objectives, promote sustainable development and advance climate-resilient infrastructure projects globally.

READ MORE