Türkiye Kalkınma ve Yatırım Bankası A.Ş. (TKYB) (Development and Investment Bank of Türkiye), the development finance institution, 99.08% owned by the Ministry of Treasury and Finance, has successfully issued its first sustainable bond, which is also the first sustainable cross-border bond issuance by a Turkish issuer under Türkiye's Capital Markets Board's Green and Sustainable Debt Instruments Guide, in September 2022. The €100m bond was governed by French law and issued through a private placement with the French development finance institution, the Agence Française de Développement (AFD).
The bond is issued under TKYB's Sustainable Finance Framework published in May 2022, which is aligned with the International Capital Market Association (ICMA) Green Bond Principles, Social Bond Principles and Sustainability Bond Guidelines.
At least 75% of the proceeds of the issue of the bond will be applied to green projects that contribute to the fight against climate change, while the remainder will be applied to social projects.
For this transaction, CMS and Yalçın Babalıoğlu Kemahlı Law Firm (YBK Law Firm), CMS' cooperation partner in Türkiye, coordinated by Marc-Etienne Sébire, Partner and Global Co-Head of the CMS Banking & Finance Group, advised the subscriber, the Agence Française de Développement. For French law, the CMS team comprised Marc-Etienne Sébire, partner, and Yaël Fitoussi and Pierre Maunand, associates. For Turkish law, the YBK Law Firm team comprised Hülya Kemahli, partner, Arcan Kemahlı, counsel, and Zeynep Berin Manavgat, associate.
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