Component A (P000968): To support Türkiye’s climate mitigation and adaptation efforts by providing long-term finance for climate-related investments, including renewable energy, energy efficiency, and/or clean mobility, to eligible sub-borrowers.
Component B (P001204): To mitigate the economic impact of the Middle East situation and support Türkiye’s economic recovery by providing short-term working capital, refinancing, and business continuity support to eligible sub-borrowers, including exporters as well as enterprises located in the regions affected by the 2023 earthquakes.
A sovereign-backed multi-sector on-lending facility of up to USD300 million in favor of Türkiye Ihracat Kredi Bankasi A.S. (Türk Eximbank) with 2 components, each financed by a separate loan instrument:
(1) Component A. Green Infrastructure. An up to 15-year loan of USD100 million to support climate investments by eligible private sector entities in Türkiye, including renewable energy, energy efficiency, clean mobility, and climate adaptation. This component is expected to benefit corporates, commercial enterprises, project companies, and small and medium enterprises (SMEs). By enabling targeted capital flows into green and climate-resilient projects, the Project contributes to Türkiye’s climate commitments while supporting inclusive and sustainable economic development, enabling green technology adoption, and reducing its imported fuel dependence. This component directly contributes to the Member's Nationally Determined Contribution (NDC) under the Paris Climate Agreement and helps prepare its export sector for the European Union (EU)'s Carbon Border Adjustment Mechanism (CBAM).
(2) Component B. Economic Recovery, under AIIB’s Energy, Food Security and Economic Resilience Facility. An up to 7-year USD200 million loan support Türkiye’s economy in strengthening its resilience amid heightened external shocks in the form of working capital and general-purpose short-term loans to eligible sub-borrowers, including corporates, commercial enterprises, and SMEs. A portion of this component will be specifically earmarked to support sub-borrowers in the 11 provinces affected by the 2023 earthquakes, to mitigate the negative impacts of the disaster.
Türk Eximbank is Türkiye's official export credit agency, established in 1987 to promote and support exports from Türkiye . Owned entirely by the Ministry of Treasury and Finance, Türk Eximbank plays a critical role in enhancing Türkiye’s global trade competitiveness by providing export credit, guarantee, and insurance programs. Headquartered in Istanbul, Türk Eximbank operates a network of 25 branches and 7 liaison offices in addition to 3 regional directorates. The Borrower offers a broad range of financial products designed to meet the needs of exporters, contractors, and investors, including short, medium-, and long-term loans, export credit insurance, and guarantees for small and large enterprises. Türk Eximbank also supports international contractors with financing projects abroad under the buyer’s credit scheme solutions. As of year-end 2025, Türk Eximbank reported total assets of approximately TRY1.29 trillion (USD30 billion equivalent) and net loans of TRY1.12 trillion (USD26 billion equivalent). It has received ratings from international credit agencies, including Ba3 (stable outlook) from Moody’s and BB- (stable outlook) from Fitch.
Applicable Policy and Categorization. AIIB’s Environmental and Social Policy (ESP), including the ESEL, and Environmental and Social Standards (ESSs), applies to the Project. The Project is placed in Category FI, as the financing structure involves the provision of funds to Türk Eximbank, pursuant to which AIIB delegates the decision-making related to the use of the AIIB’s funds, so long as the sub-projects meet the conditions of the Project Operation Manual (POM). The POM will include the selection, appraisal, approval, and monitoring of sub-projects in accordance with AIIB’s ESP requirements for Component A and Component B. Category A and Higher Risk sub-projects will be excluded from both components.
Environmental and Social Instruments. Türk Eximbank’s Environmental and Social Management System (ESMS) is materially aligned with AIIB’s ESP and will be used as the Project’s environmental and social (E&S) instrument together with the POM. Türk Eximbank is required under its ESMS to (i) screen the sub-project proposals against its E&S exclusion list, (ii) assign an E&S categorization, (iii) conduct E&S risk assessment, (iv) monitor E&S risks and impacts, (v) report to its management accordingly, (vi) disclose E&S information where required, and (vii) conduct meaningful consultation with stakeholders. Türk Eximbank will prepare a Project Appraisal Form (PAF) for sub-projects requiring prior review under Component A, as will be defined in the POM, and submit it to the Bank during the evaluation process of sub-loan, before the Borrower’s proposal to allocate from the facility proceeds. Türk Eximbank’s Sustainability, Environmental and Social Impact Management Unit is responsible for measuring the E&S impact of each sub-project to be financed by Türk Eximbank.
Environmental and Social Aspects. The sub-projects in Component A (Green Infrastructure) will focus on renewable energy, energy efficiency, clean mobility, and climate adaptation projects, whereas the sub-projects in Component B (Economic Recovery) will finance in the form of working capital and general-purpose short-term loans to eligible borrowers. Potential environmental risks include impacts on water resources, biodiversity, land, air quality, and noise levels. All sub-projects under Component A and eligible sub-borrowers under Component B will be screened by Türk Eximbank, and appropriate mitigation measures will be applied based on the identified risks. Where necessary, detailed environmental assessments, including site visits by experts, will be conducted, and clients will be required to implement site-specific Environmental Management Plans (EMPs). Potential social risks are expected to be site-specific and manageable through appropriate mitigation measures, including addressing temporary construction-related disturbances, stakeholder engagement, grievance management, contractor management, and temporary land use impacts. As some renewable energy sub-projects may require additional land, the facility will support only those that acquire land through voluntary, legally documented market transactions or voluntary rental/lease agreements.
Labor and Working Conditions (LWC), and Occupational Health and Safety (OHS): Representations and warranties on LWC to be provided by suppliers and contractors to the special purpose vehicle (SPV) of the sub-projects will be incorporated into sub-loan agreements and contracts. Under the sub-loan arrangements, sub-borrowers will be required to implement labor and OHS measures commensurate with the nature, scale, and risks of their sub-projects. Depending on the risk profile, these measures may include labor management procedures, OHS plans, emergency preparedness and response measures, worker grievance mechanisms, and contractor management requirements. Sub-borrowers will also be required to promptly report significant incidents and accidents to Türk Eximbank and implement corrective actions as necessary.
Stakeholder Engagement, Consultation, and Information Disclosure: Türk Eximbank maintains and publishes its E&S Policy[1] and ESMS.[2] Previous AIIB-financed projects with Türk Eximbank have complied with AIIB’s disclosure requirements.
Project Grievance Redress Mechanism (GRM). Türk Eximbank has an External Communications Mechanism (ECM), which will be the project-level GRM, to receive and address E&S concerns. Information on the ECM and AIIB’s Project-affected People’s Mechanism (PPM) will be disclosed in Turkish and English. The ECM will be accessible to project-affected people and contracted workers. Under the POM, sub-borrowers will be required to establish and publicize a sub-project-level GRM to receive and resolve concerns related to E&S impacts.
Monitoring and Reporting Arrangements. Türk Eximbank will assess and monitor E&S performance based on information provided by sub-borrowers, maintain a comprehensive E&S database, and submit semi-annual E&S performance reports to AIIB based on an agreed format. AIIB will conduct prior and post reviews of selected sub-projects, including engagement with Türk Eximbank, site visits where necessary, and reviews of E&S documentation as part of its supervision process.
[1] https://www.eximbank.gov.tr/en/sustainability/sustainability-policies
[2] https://www.eximbank.gov.tr/content/files/8b61a662-bc88-4f7f-a377-bc8cec1559c9/turk-eximbank-environmental-and-social-guidelines
Asian Infrastructure Investment Bank
Francisco Fortuny
Senior Investment Officer
Türkiye Ihracat Kredi Bankasi A.Ş.
Pınar Çalışkan
Head of Funding
Guarantor
Republic of Türkiye
