Impact Investing | May 23, 2024

Asian Infrastructure Investment Bank provides $200 million loan guarantee to support Türkiye’s green exporters

Lucy Ngige
Guest Author

Lucy Ngige

The Beijing-based sustainable infrastructure investor’s $200 million guarantee will backstop a 10-year, $300 million loan from ING Bank, Société Générale and Standard Chartered Bank to Türk Eximbank to fund exporters in the renewable energy and water efficiency sectors.

The deal is the first 100% “green” transaction for the export bank, which provides financing and credit solutions such as guarantees for Türkiye’s exporters. The guarantee “will support our exporters’ renewable energy investments and green transformation activities to reduce their carbon emissions,” said Türk Eximbank’s Ali Güney. The initiative will also prioritize women-led ventures.

The Eximbank bank says it is nearing completion of an additional $1.2 billion in long-term green financing to fund transition and renewable energy investments.

Green infrastructure growth

AIIB is mobilizing $50 billion by 2030 for green infrastructure projects in low-carbon public transportation, water and renewable energy. The Eximbank transaction marks Asian Infrastructure Investment Bank’s, or AIIB’s, first partial debt guarantee on a commercial loan and will cover 70% of Türk Eximbank’s green loan.

The partnership “exemplifies AIIB’s strategic focus on leveraging innovative financial instruments to mobilize private capital for green infrastructure projects,” says Najeeb Haider of AIIB.

Last year, AIIB launched an early-stage VC fund that mobilized $160 million for green infrastructure startups, and issued a $1.62 billion (€1.5 billion) sustainable development bond.