The International Finance Corporation (IFC) has invested in Türkiye’s first blue bond issuance by QNB Türkiye, alongside a green bond issuance, as part of a major initiative to expand the country’s climate finance market. This dual issuance is aimed at addressing climate change impacts and supporting the development of both blue and green economies in Türkiye.
The project comprises a $25 million blue bond, solely backed by IFC, and a $100 million green bond, with IFC and the European Bank for Reconstruction and Development (EBRD) investing $50 million each. Both bonds will carry a five-year term and include a two-year grace period. The proceeds will be used to support climate-friendly projects, enhancing Türkiye’s capacity for sustainable growth.
The project aims to enhance access to climate finance for both small and medium enterprises (SMEs) and larger companies in Türkiye, supporting green projects in renewable energy and energy efficiency to reduce the country’s carbon footprint. Blue projects will focus on biodiversity, sustainable fisheries, and eco-friendly tourism—key sectors for Türkiye’s coastal economy.
Momina Aijazuddin, IFC Regional Industry Head, Financial Institutions Group for the Middle East, Central Asia, Türkiye, Afghanistan, and Pakistan said, “Improving access to climate finance is essential to support Türkiye in tackling climate change and driving sustainable growth. We hope this first blue issuance, alongside the green bond, will help foster innovation and encourage other financial institutions to adopt sustainable practices and encourage other financial institutions to follow suit.”
IFC also assisted QNB Türkiye in refining its blue finance definition, identifying qualifying blue assets, and enhancing the bank’s environmental and social standards in line with IFC’s Blue Finance Guidelines. This collaboration aims to strengthen the bank’s sustainable finance capacity and establish a model for future blue and green financing in the region.
Ömür Tan, CEO of QNB Türkiye said, “We are proud to lead Türkiye’s first blue bond, alongside an additional green bond issuance, in partnership with IFC. This landmark transaction underscores our commitment to safeguarding vital water resources and supporting the transition towards a sustainable blue and green economy. Our collaboration with IFC reinforces QNB Türkiye’s leadership in sustainable finance and highlights our role in driving climate-smart investments that create lasting economic and environmental value.”
As part of its broader efforts to mobilise climate finance in Türkiye, IFC has played a crucial role in developing innovative financial solutions to address both the green and blue economy. With a committed portfolio of nearly $5.2 billion in Türkiye as of September 2024, the country represents IFC’s third-largest exposure globally. These efforts align with Türkiye’s goal of achieving net-zero emissions by 2053 and fostering a more resilient financial system.
