The Asian Infrastructure Investment Bank (AIIB) has signed a USD200-million on-lending facility in favor of the Industrial Development Bank of Türkiye (Türkiye Sınai Kalkınma Bankası A.Ş. or TSKB) to support the Republic of Türkiye’s climate mitigation and adaptation goals in alignment with the Paris Climate Agreement. The facility is backed by a guarantee from the Government of Türkiye and marks the third loan extended by AIIB to TSKB since their partnership began in 2018.
The new facility builds on AIIB’s ongoing partnership with TSKB through two earlier operations, both supporting Türkiye’s climate goals. TSKB Sustainable Energy and Infrastructure On-lending Facility Phase 3 aims to provide liquidity and long-term capital to eligible private sector sub-borrowers by financing renewable energy generation, energy efficiency improvements in networks, industries, and buildings, as well as investments in climate adaptation, emerging climate-related industries, and digital infrastructure. The project is expected to help Türkiye achieve its Paris Agreement commitments outlined in its Nationally Determined Contributions.
“Infrastructure that is green, innovative, and resilient lies at the core of AIIB’s mission,” said Gregory Liu, Director General, Financial Institutions and Fund clients, Global. “This facility builds on the success of our first loan to TSKB in 2018 and will enable continued progress in climate mitigation and adaptation. As Türkiye strengthens its climate commitments, we are proud to support this momentum through long-term financing and strategic partnerships.”
"We are delighted to sign this major deal on TSKB Development Day, an annual event we organized for the second time this year. Since our cooperation with AIIB began in 2018 with its first loan to the financial sector, AIIB has been one of the strongest supporters of our sustainability-focused investments,” said Murat Bilgiç, TSKB Chief Executive Officer. “With this new agreement, we continue to support the transformation of the private sector in alignment with our medium and long-term sustainable development goals, in line with Türkiye’s 12th Development Plan and the Republic of Türkiye Ministry of Energy and Natural Resources’ 2024-2028 Strategic Plan. This loan, being a Program-based financing facility, sets a new precedent. On the occasion of our Bank’s 75th anniversary, we hope this agreement will benefit our country, and we take pride in further advancing this trusted and strong partnership.”
The facility is expected to benefit a wide range of stakeholders, including energy producers, industrial enterprises improving their energy efficiency, climate technology manufacturers and service providers, and end consumers of greener products. It will also advance gender-inclusive data collection, digital transformation, and private capital mobilization.
The project is fully aligned with AIIB’s Corporate Strategy, Energy Sector Strategy, and three of the Bank’s key thematic priorities, including Green Infrastructure, Technology-enabled Infrastructure, and Private Capital Mobilization. At least USD170 million of the facility is estimated to contribute to climate change mitigation, and an additional USD10 million to climate adaptation, according to the joint MDB methodologies for tracking climate finance.
AIIB has been active in Türkiye since 2018, approving over USD5.97 billion across 33 projects, with a strong emphasis on sustainable energy, green infrastructure, and resilience.
More information about the project is available here.
About AIIB
The Asian Infrastructure Investment Bank is a multilateral development bank dedicated to financing “infrastructure for tomorrow,” with sustainability at its core. AIIB began operations in 2016, now has 110 approved members worldwide, is capitalized at USD100 billion, and is AAA-rated by major international credit rating agencies. AIIB collaborates with partners to mobilize capital and invest in infrastructure and other productive sectors that foster sustainable economic development and enhance regional connectivity.
