IFC Partners with QNB Türkiye on First-of-its-Kind Transition Bond to Spur Productivity and Competitiveness in Türkiye

• Climate transition bond marks first‑of‑its‑kind issuance following the new ICMA Guidelines.
• A significant portion of proceeds will advance decarbonization in hard‑to‑abate and energy-intensive sectors.
• Investment will support the competitiveness of the Turkish manufacturing sector, helping drive local job creation.

İstanbul, Türkiye, December 8, 2025— IFC provided advisory support and invested $100 million in QNB Bank Anonim Şirketi’s (QNB Türkiye) climate transition bond to support low carbon and resilience investments across Türkiye. This marks IFC’s first investment in a climate transition bond, aligned with the International Capital Market Association (ICMA) Climate Transition Bond Guidelines, and sets a pioneering example for financial institutions globally.

A climate transition bond is a use-of-proceeds instrument designed to finance projects that help issuers, especially those financing or operating in high-emitting sectors, move toward net-zero, in line with the Paris Agreement. According to the latest guidance from ICMA, climate transition bonds must be anchored to a credible transition plan, demonstrate alignment with recognized decarbonization pathways and taxonomies, and ensure transparent annual reporting on progress. Through its engagement in ICMA’s Climate Transition Finance Working Group, IFC helped shape the latest climate-transition finance standards.

This new label adds “transition” as a category alongside green, social, and sustainability and sustainability-linked bonds. IFC is actively exploring pilot transition finance transactions with its clients as this category develops to meet emerging market demand.

QNB Türkiye will allocate proceeds from the five-year bond to low-carbon and resilient investments, with at least $50 million directed to hard-to-abate sectors. This focus aligns with the structural shift in the global economy, where modernization in hard-to-abate sectors shapes productivity and competitiveness. This transaction supports clean energy integration, where credible transition finance is most needed, helping industries reduce costs, boost energy security, and enhance competitiveness. As these sectors advance, they cut emissions while delivering wider gains, including the creation of new jobs. Manufacturing represents around 20 percent of total employment in Türkiye—above the global average—making the sector central to economic resilience and job creation.

“IFC’s first-ever global investment in a Climate Transition Bond through this transaction marks a significant milestone for transition finance and reflects strong international confidence in Türkiye’s potential for sustainable transformation,” said Ömür Tan, CEO of QNB Türkiye. “This financing enables us to support high-impact, science-aligned pathways by funding green transition projects in hard-to-abate sectors - helping accelerate the country’s shift toward a low-carbon economy.”

“This landmark investment helps prove that economy-wide transformation requires bringing heavy industry along, industries critical to improving energy efficiency and driving job creation,” said Momina Aijazuddin, IFC Regional Industry Head, Financial Institutions Group for the Middle East and Central Asia. “By investing in a first-of-its-kind issuance, we aim to crowd in private capital to credible, science-based decarbonization plans and accelerate Türkiye’s path to net-zero by 2053.”

The issuance introduces climate transition finance in Türkiye’s capital markets, supporting the country’s net-zero targets and highlighting the critical role of private capital mobilization in achieving this ambition. IFC’s investment aligns with the Türkiye Industrial Decarbonization Investment Platform (TIDIP)—launched by the Ministry of Industry and Technology with IFC, the World Bank, and EBRD—to identify priority technologies in iron & steel, aluminum, cement, and fertilizers, matchmake market participants, coordinate financing, and lower transaction costs for low carbon investments.

This transaction builds on IFC’s partnership with QNB Türkiye to advance sustainable finance in Türkiye, following IFC’s investments in the first blue bond issued by QNB Türkiye and a loan to QNB Leasing supporting green and blue projects, together catalyzing innovation across green, blue, and now transition finance.

About QNB Türkiye

QNB Group, which continues its steady growth across the Middle East and Africa region, operates with more than 31,000 employees, a network of over 5,000 ATMs, and more than 900 locations. Recognized by Brand Finance Magazine as the most valuable banking brand in the Middle East and Africa, QNB Group’s Turkish subsidiary, QNB Türkiye, operates with 426 branches and 10,433 employees as of September 30, 2025.