The Asian Infrastructure Investment Bank (AIIB) signed a USD200 million guarantee to support 70% of Türk Eximbank’s inaugural green loan, underpinned by a counter-guarantee from the Ministry of Treasury and Finance of Türkiye. It is the AIIB’s first partial debt guarantee on a commercial loan transaction.
The transaction supports Türk Eximbank in providing long-term financing to Turkish exporters involved in renewable energy and enhancements in energy and water efficiency. The project emphasizes inclusion, particularly supporting enterprises with significant female participation. AIIB mobilized close to USD300 million of 10-year private capital from top-tier international banks for this project, in line with its priorities to mobilize private capital and invest in green infrastructure. The loan is anticipated to fully qualify as climate mitigation finance.
“We are delighted to announce this groundbreaking transaction with our client, Türk Eximbank, in collaboration with ING Bank, Société Générale and Standard Chartered Bank, which are providing a loan under AIIB’s guarantee for the first time,” said Najeeb Haider, Director General of AIIB’s Investment Operations (Region 2) Banking Department. “This partnership exemplifies AIIB’s strategic focus on leveraging innovative financial instruments to mobilize private capital for green infrastructure projects.”
Türk Eximbank’s General Manager, Ali Güney, said: "With this one-of a kind facility, under the guarantee of the AIIB, we will support our exporters' renewable energy investments and green transformation activities to reduce their carbon emissions. It is also the first transaction of Türk Eximbank fully committed to green principals. In the very near future, with the USD1.2 billion total worth of long-term green financing that we are finalizing overall, we will again emphasize the importance and support we give to the green transformation of our country and our exporters."
Through the guarantee, AIIB is providing much-needed credit enhancement to help Türk Eximbank mobilize long-term private capital well above AIIB’s guarantee amount and unlock capacity for international banks under challenging market conditions. The guarantee structure includes tranches in both Euro and USD and features a first-loss guarantee alongside a pari passu guarantee arrangement. In this way, this project is an exemplary case of blended financing between private sector banks and strategic multilateral financing institutions.
“It is part of Société Générale’s DNA to push for innovative structures,” said Laurent Eurin, Managing Director, Head of Asia, Americas & Türkiye at SG Development & Structured Export Finance. “The fact that this transaction is the first-ever financing under AIIB’s partial guarantee product makes us extremely proud, as it is unquestionably a significant milestone in blended financing between private sector banks and strategic multilateral financing institutions, in support of increasing green infrastructure financing needs. We are very thankful to both Türk Eximbank and AIIB in the trust vested in our institution for this mutual success, that will call for many more in the years to come.”
“Together with AIIB we are contributing to Türk Eximbank’s mission for domestic energy transition. We are proud to participate in Turk Eximbank’s first green loan and AIIB’s first guarantee, and we believe that this innovative financing arrangement represents a crucial step toward promoting sustainable infrastructure development in Türkiye,” said Michiel de Vries, Global Head of Structured Export Finance, ING Bank.
“Standard Chartered is proud to act as Global Co-ordinator, Mandated Lead Arranger and Facility Agent for the first ever AIIB-guaranteed Green Loan for Türk Eximbank for its renewable energy projects, working closely with the Government of Turkiye’s Ministry of Finance and other lenders. As a leading financial institution, we are committed to expanding access to sustainable financing, investing where it is needed most, and are pleased to strengthen our relationship with this important client,” said Faruq Muhammad, Managing Director, Global Head of Structured Export Finance, Standard Chartered Bank.
About AIIB
The Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank dedicated to financing the Infrastructure for Tomorrow—infrastructure with sustainability at its core. Operational since January 2016 and boasting 109 approved members worldwide, AIIB is capitalized at USD 100 billion and Triple-A-rated by major international credit rating agencies. Collaborating with partners, AIIB meets clients’ needs by unlocking new capital and investing in infrastructure that is green, technology-enabled, and promotes regional connectivity.
