Turkey’s Industrial Development Bank (TSKB) has signed a new $200 million credit agreement with the Japan International Cooperation Bank (JBIC) in February 2023. The agreement aims to support projects for the green transformation of companies affected by earthquakes in the eastern and southeastern regions of Turkey.
TSKB’s Sustainable Green Investments
This agreement, targeting significant support for Turkey’s qualified development, was realized under the guarantee of the Republic of Turkey Ministry of Treasury and Finance. TSKB, signing a long-term collaboration with JBIC, is set to contribute to the sustainable development of companies affected by earthquakes in the eastern and southeastern regions.
Scope and Financing of Investments
Under the agreement, financing will be provided for investments in renewable energy, energy efficiency, water and waste management, and advanced technology-supported energy efficiency. Sumitomo Mitsui Banking Corporation (SMBC), as the second-largest participant bank after JBIC, also supported the agreement as a credit representative.
Long-Term Collaboration History
TSKB had previously signed its first credit agreement with JBIC in 2000, aiming to strengthen companies directly and indirectly affected by the 1999 earthquake. In 2015, another $150 million credit agreement was signed to contribute to investments in renewable energy and energy efficiency to reduce greenhouse gas emissions in Turkey. This new agreement follows the $220 million credit agreement in 2022.
Statement from TSKB CEO Murat Bilgiç
TSKB CEO Murat Bilgiç stated that the new agreement with JBIC will significantly contribute to the improvement, rehabilitation, and reconstruction efforts of companies affected by earthquakes, emphasizing the principles of inclusiveness and green transformation. He also highlighted that around 90% of TSKB’s credit portfolio consists of investments related to the UN Sustainable Development Goals, and the funds obtained from JBIC will directly contribute to four of these goals.
Statement from JBIC General Director Ryuta Suzuki
JBIC General Director Ryuta Suzuki emphasized the crucial role of TSKB in the resilient, inclusive, and sustainable reconstruction efforts of earthquake-affected areas. He expressed the honor and satisfaction of collaborating with TSKB as a long-time partner, emphasizing the historical support between Turkey and Japan during challenging times. He regarded this credit agreement as a symbol of collaboration between the two countries and institutions.
