The World Bank will provide a loan worth $155 million (TL 4.5 billion) to the Industrial Development Bank of Türkiye (TSKB) for the country's newly established green fund, according to a TSKB statement on Wednesday.
The financing was provided under the guarantee of the Turkish Treasury and Finance Ministry, according to the statement.
The Türkiye Green Fund (TGF), a venture capital investment fund, was established to provide green financing to businesses, promote investment in green technologies and diversify the financial sector.
The fund is forecast to achieve a total equity amount of $405 million, $100 million of which will be at the fund level and $150 million at the company level, in addition to the World Bank loan.
Kerem Dönmez, the general director of foreign economic relations of the Ministry of Treasury and Finance, whose views were included in the statement, expressed he believes "that the Türkiye Green Finance Project will be a driving force in achieving our green development goals."
The project will create significant new venture capital investment opportunities and contribute to the development of Türkiye's capital markets, Dönmez added.
Humberto Lopez, World Bank Türkiye country director, said: "The Green Finance Project will ultimately support the transition to a low-carbon and climate-resilient economy, contribute to financial sector diversification and support the development of domestic sources of long-term finance, capital markets and job creation."
TSKB CEO Murat Bilgiç for his part said they aimed to "increase the diversity, amount and, most importantly, the multiplier effect of resources for climate finance in our capital markets under this fund."
Bilgiç noted that the TGF will be the first venture capital investment fund in Türkiye and the world dedicated to green and inclusive transformation financed through loans.
The TGF will be managed by Maxis Private Equity Portfolio Management A.S., one of Türkiye’s largest asset management companies and a Project Implementing Entity under the project itself.