The key facts

  • Turk Eximbank signed agreements with IBRD (€209.2 million), KfW (€250 million) and AIIB ($200 million and $100 million)
  • QNB Türkiye arranged financing of up to $500 million with ADB, AIIB, EBRD, FMO and IFC for a term of five years
  • Turkey's first 'Silver Economy Bond' and the largest Nature Bond issuance are planned

Agreements signed in Antalya as part of COP31

At the UN climate conference COP31 taking place in Antalya, the Turkish export bank Turk Eximbank and QNB Türkiye signed financing agreements with international development institutions. The deals are oriented toward sustainable investment and inclusive growth.

Turk Eximbank raised about $780 million

Turk Eximbank concluded four loan agreements with the International Bank for Reconstruction and Development (IBRD), the Asian Infrastructure Investment Bank (AIIB) and the German development bank KfW, as evidenced by a disclosure on Turkey's Public Disclosure Platform. The package included €209.2 million (about $231.2 million) from IBRD, €250 million from KfW and two separate loans from AIIB — $200 million and $100 million.

QNB Türkiye: up to $500 million from five institutions

QNB Türkiye signed financing agreements worth up to $500 million with five development institutions for a term of five years: the Asian Development Bank (ADB), AIIB, the EBRD, the Dutch FMO and the International Finance Corporation (IFC). The funds are planned to be directed toward green investments, climate finance, social development, women's entrepreneurship, agriculture and forestry, and the 'blue economy'.

First-of-their-kind bond issuances

Under the agreement with ADB, half of the planned $100 million will go toward green financing, with the rest channeled through a 'Silver Economy Bond' for small and medium-sized businesses owned or run by middle-aged and older people. According to the bank, this will be QNB Türkiye's first deal with ADB, Turkey's first Silver Economy Bond issuance and the first such bond with ADB investment support. Up to $150 million from AIIB will go toward climate finance, green investments and companies' working capital; preparation of the $100 million from the EBRD is underway under the Green Economy Financing Facility. With FMO, the bank is working on up to €50 million in the form of a Nature Bond for the blue economy, forestry and agriculture — it is expected to become the largest Nature Bond issuance in Turkey. A further $100 million from IFC is earmarked for green investments and projects expanding women's economic participation.

Comment from bank leadership

QNB Türkiye CEO Omur Tan said that the bank has so far raised $11 billion in external financing, including about $3.5 billion from sustainable sources, and has extended roughly $5.8 billion in sustainable loans. According to him, signing agreements with five reputable development banks is important for sustainable financing, and the funds will cover a wide range of companies — from those investing in the green transition to elderly entrepreneurs and SMEs considering investments in the earthquake-affected region of Turkey.