BAKU, Azerbaijan, June 5. The Asian Infrastructure Investment Bank (AIIB) has signed a $200-million on-lending facility with the Industrial Development Bank of Türkiye (Türkiye Sınai Kalkınma Bankası A.Ş. – TSKB) to bolster the country’s efforts in climate mitigation and adaptation in line with the Paris Climate Agreement, Trend reports citing the Bank.
The loan, backed by a guarantee from the Government of Türkiye, marks the third such agreement between AIIB and TSKB since their partnership began in 2018.
The "TSKB Sustainable Energy and Infrastructure On-lending Facility Phase 3" will provide long-term financing to eligible private sector borrowers engaged in renewable energy, energy efficiency, and climate adaptation initiatives. The funds will also support investments in emerging climate-focused industries and digital infrastructure, helping Türkiye meet its Nationally Determined Contributions under the Paris Agreement.
A broad range of stakeholders is expected to benefit from the facility, including renewable energy producers, industrial entities improving energy efficiency, manufacturers of climate technologies, and consumers of sustainable products. The project will also promote gender-inclusive data collection, accelerate digital transformation, and mobilize private capital.
According to joint multilateral development bank (MDB) methodologies, at least $170 million of the loan will contribute to climate change mitigation, with a further $10 million supporting adaptation measures.