BAKU, Azerbaijan, May 21. The Asian Infrastructure Investment Bank (AIIB) has signed a $200 million guarantee to support 70 percent of Türk Eximbank’s inaugural green loan, backed by a counter-guarantee from the Ministry of Treasury and Finance of Türkiye, Trend reports via AIIB.
This marks AIIB’s first partial debt guarantee on a commercial loan transaction.
The transaction will aid Türk Eximbank in providing long-term financing to Turkish exporters involved in renewable energy and improvements in energy and water efficiency. AIIB has mobilized nearly USD 300 million in 10-year private capital from top-tier international banks for this project, aligning with its priorities to mobilize private capital and invest in green infrastructure. The loan is expected to fully qualify as climate mitigation finance.
Through the guarantee, AIIB offers crucial credit enhancement to help Türk Eximbank attract long-term private capital well above AIIB’s guarantee amount, thereby unlocking 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. This project serves as an exemplary case of blended financing between private sector banks and strategic multilateral financing institutions.
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