IFC Invests $100M in QNB Türkiye’s Climate Transition Bond to Drive Decarbonization

IFC played a direct role in shaping these global standards through its participation in ICMA’s Climate Transition Finance Working Group, reflecting its leadership in emerging-market climate finance.

The International Finance Corporation (IFC) has provided advisory support and a $100 million investment in QNB Bank Anonim Şirketi’s (QNB Türkiye) inaugural climate transition bond, marking IFC’s first-ever global investment in a bond of this category. The transaction represents a major breakthrough in transition finance, setting a model for financial institutions worldwide as they work to support hard-to-abate sectors in shifting toward net-zero emissions.

A New Era for Transition Finance

A climate transition bond is a specialized “use-of-proceeds” instrument designed to help companies—especially those in high-emitting sectors such as steel, cement, aluminum, and fertilizers—take measurable steps toward decarbonization. These bonds must meet strict criteria under the ICMA Climate Transition Bond Guidelines, including:

• A credible transition plan aligned with the Paris Agreement

• Clear connection to recognized decarbonization pathways and taxonomies

• Transparent annual reporting tracking emissions reductions and investments

• Commitment to science-based milestones

IFC played a direct role in shaping these global standards through its participation in ICMA’s Climate Transition Finance Working Group, reflecting its leadership in emerging-market climate finance.

This new label expands sustainable finance categories beyond green, social, sustainability, and sustainability-linked bonds, adding “transition” to support economy-wide decarbonization, especially where emissions are hardest to reduce.

Financing Low-Carbon Transformation Across Türkiye

Proceeds from QNB Türkiye’s five-year climate transition bond will be directed toward:

• Low-carbon investments

• Climate resilience projects

• Modernization in hard-to-abate industries, with at least $50 million specifically earmarked for these sectors

These investments align with Türkiye’s broader economic transformation, recognizing that:

• Manufacturing employs 20% of the country’s workforce—making decarbonization essential for sustaining jobs

• Industries must modernize to remain competitive and reduce energy costs

• Energy-efficient technologies improve both productivity and national energy security

By enabling cleaner industrial practices, the bond is expected to generate new green jobs, advance technological adoption, and strengthen Türkiye’s long-term climate resilience.

Leadership Statements on the Milestone Investment

Ömür Tan, CEO of QNB Türkiye, emphasized the importance of this historic deal:

“IFC’s first global investment in a Climate Transition Bond marks a major milestone for transition finance and shows strong international confidence in Türkiye’s potential for sustainable transformation. This financing supports science-aligned pathways in hard-to-abate sectors, accelerating the country’s shift to a low-carbon economy.”

Momina Aijazuddin, IFC Regional Industry Head for Financial Institutions in the Middle East and Central Asia, highlighted its global significance:

“Economy-wide transformation requires bringing heavy industry along. By backing this first-of-its-kind issuance, we aim to mobilize private capital for credible decarbonization plans and accelerate Türkiye’s path to net-zero by 2053.”

Supporting National Industrial Decarbonization Goals

The bond supports key national efforts, including:

Türkiye Industrial Decarbonization Investment Platform (TIDIP)

Developed by Türkiye’s Ministry of Industry and Technology with IFC, the World Bank, and EBRD, TIDIP works to:

• Identify low-carbon technologies for steel, cement, aluminum, and fertilizer sectors

• Connect companies with financiers

• Coordinate investment flows

• Reduce transaction costs

• Support large-scale adoption of green technologies

Advancing Sustainable Finance in Türkiye’s Capital Markets

This bond represents a historic introduction of climate transition finance to Türkiye’s capital markets, demonstrating the essential role of private capital mobilization in meeting the country’s net-zero emissions target by 2053.

It builds on IFC’s long-standing partnership with QNB Türkiye, including:

• Investment in Türkiye’s first blue bond

• A green and blue finance loan to QNB Leasing

• Efforts that collectively catalyze innovation across green, blue, and now transition finance sectors

Through this latest support, IFC signals strong confidence in Türkiye’s ability to lead in climate-aligned financial innovation while enabling industries to modernize and compete in a global low-carbon economy.