Case Studies

TSKB Leverages History, Relationships and Expertise in Pursuit of Sustainable Finance


The Green Bond issued by Turkish bank TSKB in 2016, the first-ever such instrument out of the Turkish banking universe, was over-subscribed a whopping 14 times. A year later, the bank issued a Sustainable Tier II Bond, the first-ever globally, which achieved its target four times over. Significant to note, the bank was able to raise $300 million from each of its two issuances separately and disbursed the funds to the financed assets at the latest by one year after the issue, in each case.

This Case Study seeks to document the TSKB Green Bond issuance journey from the time it was conceptualized to its eventual presentation to the market. It examines the internal factors that motivated TSKB to pioneer the issuance of Turkey’s first Green Bond. It also documents the bonds’ uptake and absorption by the portfolio of assets linked to them. Critical to this analysis are the two issues’ success factors and some of the challenges experienced by the issuer along the way, and how it was able to navigate and innovate around these, to ensure success.