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Industrial Development Bank of Türkiye (TSKB) has signed a €250 million ($293.54 million) loan agreement with Germany’s KfW Development Bank under the framework of climate finance and economic cooperation.
The facility, provided with a sovereign guarantee from Türkiye’s Treasury and Finance Ministry, will fund a broad range of climate-themed projects across the country, including investments in renewable energy, energy efficiency, storage technologies, climate adaptation, circular economy, and environmentally sustainable products.
The credit line will also prioritize projects that bolster Türkiye’s cooperation with the European Union, particularly Germany. TSKB stated that the initiative is aimed at expanding its contribution to low-carbon and climate-resilient development goals.
According to the bank, proceeds from the loan will be used to support green investments that align with both national decarbonization efforts and cross-border sustainability cooperation, comprising financing for "climate industries" and projects that facilitate adaptation to climate change.
TSKB CEO Ozan Uyar emphasized the historical ties between the two institutions, dating back to 1969, and said the new agreement will further solidify their strategic cooperation. "With this resource of €250 million brought to Türkiye, we will finance climate-friendly investments ranging from renewable energy to circular economy and environmental products," Uyar said in a written statement.
He added that the bank’s efforts will strengthen economic ties between Türkiye and Germany while contributing to the country’s green transition and its pursuit of the United Nations Sustainable Development Goals.
Klaus Muller, director for Southeast Europe and Türkiye at KfW, said the agreement marks a new and strategic chapter in the bank’s relationship with TSKB. He noted that the financing will support sustainable growth and carbon emission reduction while enabling the implementation of high-impact projects.
"This resource will also mutually support German-Turkish economic interests," Muller stated, adding that KfW appreciates the guarantee and backing provided by Türkiye’s finance ministry and looks forward to continued cooperation in the years ahead.
Established in 1950, the TSKB is the country’s first privately owned development and investment bank, with 47% of its shares held by Türkiye’s largest private lender, Is Bank, and total assets of €6.26 billion ($7.35 billion) as of the third quarter of 2025.
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