BAKU, Azerbaijan, October 17. The International Finance Corporation (IFC) is set to invest in Türkiye's first blue bond issuance by QNB Türkiye, alongside a green bond issuance, to strengthen the country's climate finance market, Trend reports via the IFC.
This landmark initiative aims to address the impacts of climate change in Türkiye while promoting the blue economy.
The two bond issuances consist of up to $25 million in blue bonds, with IFC serving as the sole investor, and up to $100 million in green bonds, where IFC and the European Bank for Reconstruction and Development (EBRD) will each invest up to $50 million. Both bonds will feature a five-year tenor and a two-year grace period.
The project is expected to enhance access to climate finance for small and medium enterprises (SMEs) and larger companies in Türkiye. It will support green initiatives in renewable energy and energy efficiency, contributing to the reduction of the country’s carbon footprint, as well as blue projects that promote biodiversity, sustainable fisheries, and sustainable tourism—key sectors for Türkiye’s coastal economy.
To bolster QNB Türkiye's sustainable finance capabilities, IFC also assisted the bank in refining its definition of blue finance, identifying relevant blue assets in its portfolio based on IFC Guidelines for Blue Finance, and enhancing compliance with environmental and social standards.
As of September 2024, Türkiye represents IFC's third-largest country exposure globally, with a committed portfolio nearing $5.2 billion.
Follow the author on X: @Lyaman_Zeyn