The Development Investment Bank of Turkey (Development Bank) mediated Turkey's first low-carbon economy transition bond amounting to TRY 200 million. The Bank served as financial advisor to natural gas distributor PALGAZ.
The Development Bank and Metsims Sustainability Consulting created the sustainability framework. UNDP Istanbul International Center for Private Sector in Development (IICPSD) contributed to the framework development process, especially by sharing global practices, in order to support efforts to transition to a low-carbon economy.
“With this investment, which makes a significant contribution to our country's transition to a low-carbon economy, Palgaz will produce 5.3 billion kWh of clean and renewable energy and achieve a 63 percent reduction in carbon emissions compared to the current situation. It is a source of happiness and pride for us to be involved in the transition to carbon economy bond issuance," Development Bank CEO İbrahim Öztop said.
The Bank has been supporting investments aimed at transitioning to a low-carbon economy over the last three decades.
A low-carbon economy transition bond is a type of instrument used to finance export revenues, projects suitable for transition to a low-carbon economy.