EBRD supports green financing through QNB Türkiye bond

The European Bank for Reconstruction and Development (EBRD) has participated in a green bond issuance by Türkiye's QNB Türkiye, with an investment of US$ 50 million (€46 million).

The bond is being issued under QNB's Sustainable Finance and Product Framework, with a total subscription of US$ 100 million in equal tranches from EBRD and IFC. The Framework covers the issuance of green, social and sustainability bonds, in alignment with the International Capital Market Association's Green Bond Principles.

Domestic banks have played a crucial role in facilitating sustainable and climate finance in Türkiye, with issuances used to finance investments mostly in the energy sector, but also in healthcare, waste management and green buildings.

Türkiye continues to pursue an ambitious climate agenda, with a net-zero target of 2053, requiring an estimated US$ 10 billion in financing annually until 2030 across sectors such as energy, transportation, construction and industry.

By investing in QNB Türkiye's issuance the EBRD is reinforcing its commitment to sustainability and environmental initiatives in the country, addressing climate change and promoting sustainable development.

The EBRD's investment will accelerate Türkiye's transition to an environmentally sustainable, low-carbon and climate-resilient economy, moving away from carbon-intensive, climate-vulnerable and environmentally damaging activities.

Francis Malige, the EBRD's Managing Director for Financial Institutions, said: "We are pleased to observe intensified efforts by the Turkish financial sector to commit to green investments. QNB Türkiye is a longstanding partner of the EBRD with a strong track record in green finance, and we have great confidence that this project, in cooperation with our colleagues in the IFC, will strongly contribute to Türkiye's green transition."

Ömür Tan, Chief Executive Officer of QNB Türkiye, said: "We are proud to advance our strategic vision for sustainable finance through this collaboration with the EBRD. This green bond issuance not only supports critical green projects but also marks a pivotal step in accelerating Türkiye's transition to a low-carbon and climate-resilient economy. Our financial solutions, designed with a forward-looking approach, will contribute significantly to Türkiye's net-zero emissions target. By embedding sustainability at the core of the financial system, we are taking on a role that not only addresses today's challenges but also shapes the future."

The EBRD is among Türkiye's key investors, with more than €20 billion invested through 450 projects and trade finance limits since 2009, most of which has been in the private sector.

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