Question 1

What is Türkiye Sınai Kalkınma Bankası A.Ş.?

Accepted Answer

Türkiye Sınai Kalkınma Bankası A.Ş. (TSKB), known in English as the Industrial Development Bank of Turkey, is Turkey's first privately-owned development and investment bank. Established in 1950 with support from the World Bank and the Central Bank of Turkey, TSKB specializes in providing medium to long-term financing and advisory services for sustainable development projects across various sectors.

The bank is a member of the Türkiye İş Bankası Group, which holds approximately 47.68% of TSKB's shares, while Vakıflar Bankası owns 8.38%. The remaining 43.94% of shares are publicly traded on Borsa İstanbul under the ticker symbol "TSKB."

Question 2

When was Türkiye Sınai Kalkınma Bankası A.Ş. founded?

Accepted Answer

TSKB was founded in 1950, making it one of Turkey's oldest development banking institutions. The bank was established through a collaboration between the World Bank, the Central Bank of Turkey (TCMB), and private commercial banks.

The founding came after a 1949 visit by World Bank delegations to Ankara and Istanbul, where discussions with government officials and business leaders identified the need for a specialty bank to support private sector industrial development. TSKB was created to provide long-term investment loans and technical support to Turkey's emerging private sector during a period of rapid industrialization.

Question 3

Where is Türkiye Sınai Kalkınma Bankası A.Ş. headquartered?

Accepted Answer

TSKB is headquartered in Istanbul, specifically at Meclis-i Mebusan Cad. 81, Fındıklı, Beyoğlu. The bank's head office is located in the historic Fındıklı district along the Bosphorus.

In addition to its Istanbul headquarters, TSKB maintains regional offices in Ankara and İzmir to serve clients across different regions of Turkey.

Question 4

Where does Türkiye Sınai Kalkınma Bankası A.Ş. operate?

Accepted Answer

TSKB operates throughout Turkey with a focus on serving both established industrial centers and developing regions. The bank conducts business through its head office in Istanbul and branches in Ankara and İzmir.

While TSKB has a nationwide reach, it particularly emphasizes financing projects in Turkey's developing regions to promote balanced economic growth. The bank also engages extensively with international markets to secure funding from development finance institutions and international financial institutions for deployment in Turkey.

Question 5

What services does Türkiye Sınai Kalkınma Bankası A.Ş. offer?

Accepted Answer

TSKB offers three main categories of services: corporate banking, investment banking, and advisory services.

Corporate Banking: The bank provides medium to long-term financing through corporate loans and project finance, with a particular focus on sustainable investment projects. These include renewable energy, energy efficiency, environmental protection, and industrial development financing.

Investment Banking: TSKB offers capital markets services, including underwriting, corporate finance advisory, mergers and acquisitions support, privatization consulting, and debt issuance services. The bank has pioneered numerous capital market innovations in Turkey.

Advisory Services: Through its subsidiaries and dedicated teams, TSKB provides sustainability consulting, real estate appraisal services, environmental and social risk assessment, and sector-specific technical advisory support.

Digital Services: The bank offers online banking platforms and digital tools to facilitate client transactions and provide access to research and economic analysis.

Question 6

What makes Türkiye Sınai Kalkınma Bankası A.Ş. unique?

Accepted Answer

TSKB is Turkey's pioneer in sustainable banking and has maintained this leadership position for decades. The bank became Turkey's first carbon-neutral bank in 2008 and has continuously operated as such by using 100% renewable electricity.

TSKB was the first Turkish bank to join the United Nations Environment Programme Finance Initiative (UNEP FI) and the United Nations Global Compact (UNGC). In 2022, it became a member of the UN Net Zero Banking Alliance (NZBA) and has Science Based Targets initiative (SBTi)-approved greenhouse gas reduction targets.

The bank finances approximately 15% of Turkey's renewable energy installed capacity and has supported 421 renewable energy projects to date. As of 2023, approximately 90% of TSKB's loan portfolio is linked to the UN Sustainable Development Goals (SDGs), representing one of the highest proportions in Turkish banking.

TSKB was also globally the first bank to issue a sustainable Tier II bond in 2017, demonstrating its innovative approach to sustainable finance.

Question 7

What type of financial institution is Türkiye Sınai Kalkınma Bankası A.Ş.?

Accepted Answer

TSKB is classified as a development and investment bank (kalkınma ve yatırım bankası) under Turkish banking regulations. This designation reflects its specialized role in providing long-term development financing and investment banking services rather than retail banking operations.

As a development bank, TSKB focuses on supporting Turkey's economic development through project-based lending, with emphasis on sustainable and inclusive growth. As an investment bank, it provides capital markets services, corporate advisory, and acts as an intermediary between international development finance institutions and Turkish businesses.

Unlike commercial banks that primarily serve retail customers and provide short-term financing, TSKB specializes in medium to long-term loans for industrial and infrastructure projects. The bank is also unique in being the only private bank, besides state-owned banks, with access to Turkish Treasury and Finance Ministry guarantees for funds secured from development financial institutions.

Question 8

What is TSKB's approach to sustainable finance?

Accepted Answer

TSKB has embedded sustainability into its core business model since the 1980s, when it first began integrating environmental considerations into its credit appraisal process. The bank created Turkey's first integrated environmental and social risk evaluation model in 2002-2003 with support from the World Bank and German KfW.

In 2016, TSKB became the first Turkish bank to issue a green bond on international markets. The bank has since issued multiple sustainable bonds and has channeled these proceeds into over 250 sustainable projects, resulting in approximately 9 million tonnes of CO2 equivalent emissions reduced or avoided annually through renewable energy projects.

TSKB set a target in 2021 to provide SDG-linked financing of at least USD 8 billion by 2030, which was uplifted to USD 10 billion after achieving 40% of the original target by the end of 2023. The bank contributes to annual greenhouse gas emission reductions of approximately 16.2 million tonnes through the renewable energy projects it finances.

Question 9

How does TSKB collaborate with international institutions?

Accepted Answer

Since its founding with World Bank support, TSKB has maintained strong partnerships with supranational financial institutions and international development agencies. The bank acts as an agent for numerous international financial institutions investing in Turkey, including the World Bank (IBRD), European Bank for Reconstruction and Development (EBRD), International Finance Corporation (IFC), European Investment Bank (EIB), and KfW.

These long-standing relationships allow TSKB to access low-cost, long-term funding from international markets and bring qualified, themed global funds to Turkish businesses. The bank's status as a trusted partner of these institutions also enables it to stay current with international banking best practices and sustainable finance developments.

TSKB regularly issues debt instruments in foreign capital markets, including bonds in Tokyo and other international financial centers, to create additional resources for Turkey's sustainable development investments.

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