Linklaters has advised Turkiye Sinai Kalkinma Bankasi A.S. (TSKB) on a $300 million green bond issuance, the first ever green bond from Turkey and only the second within the CEEMEA region. The proceeds will be used for private sector investments in renewable energy, energy efficiency and other areas that reduce greenhouse gas emissions.

TSKB, rated Baa3 by Moody's and BBB-by Fitch, has agreed to issue a US$300 million 4.875% 2021 green bond, the pricing on which tightened significantly during execution and saw a book of US$3.9bn - the largest seen for a Turkish FIG issuer since 2014.

Richard O’Callaghan, Capital Markets partner at Linklaters, says: “Green bonds are becoming increasingly popular as effective instruments for raising capital on a cost effective basis, especially at a time when conventional investors want to find ways to prove their green credentials. It’s quite a buoyant market at the moment and we’re expecting to see more green bonds from CEEMEA as the sustainability agenda gathers pace in the region. The extraordinary levels of demand seen for the paper, and the tight pricing levels, should make other issuers take notice.”

The Linklaters team was led by Capital Markets partner Richard O’Callaghan and included associate Campbell Naylor and U.S. associate Burc Ozcelik.