Türkiye's export credit bank on Wednesday said it had signed a 1 billion-euro loan ($1.1 billion) financing deal under the World Bank’s guarantee to support green transformation investments.
The loan deal for the "Türkiye Green Export Project" under counterguarantee of the Treasury and Finance Ministry, as well as the first-loss guarantee of 600 million euros from the International Bank for Reconstruction and Development (IBRD), a member of the World Bank Group, was signed on May 7, Türk Eximbank said in a statement.
Deutsche Bank, Standard Chartered Bank, BNP Paribas and ING Bank participated in the financing facility with a 10-year maturity, it noted.
It marks Türk Eximbank's largest borrowing transaction to date and the first IBRD guarantee aimed at supporting exporters with their green transition.
The financing will help support exporters to overcome the challenges that may arise as a result of the European Union's Carbon Border Adjustment Mechanism (CBAM), the bank said.
Initially targeting carbon-intensive sectors as of 2026, the scheme will later be applied to other carbon-intensive sectors and carbon taxes in other export markets.
The project will finance exporters' investments in renewable energy production and energy efficiency, as well as their working capital requirements.
The facility also has social objectives, such as financing companies that support women's participation in the workforce and small and medium-sized enterprise (SME) financing.
"We place great importance on ensuring that our exporters, who are the driving force of our economy, have access to financing under favorable conditions and on supporting their adaptation to the CBAM to enhance their international competitiveness," said Kerem Dönmez, general director of foreign economic relations of the Treasury and Finance Ministry.
Dönmez said the project would lead exporters in their green transformation, create new employment opportunities, and support Türkiye's goal of achieving net zero emissions by 2053.
Humberto Lopez, World Bank country director for Türkiye, said the ongoing success of the export sector is vital for Türkiye’s economy, and its transition toward sustainability remains a high priority for the government.
"The World Bank is pleased to assist in these initiatives, which will not only support the worldwide shift towards a low-carbon future but also boost the competitiveness of both the firms and the country," Lopez noted.
Türk Eximbank General Manager Ali Güney said through the facility, they will do their part in the strategic road map to be drawn in line with the transition to a low-carbon economy and the protection of the competitiveness of exporters in the related sectors.
"In this respect, the funding will also accompany Türkiye's climate change adaptation efforts while supporting the long-term finance needs of Turkish exporters," Güney added.