The first sustainability bond issued by a private non-financial company in Türkiye

By Dilara Sarı

The European Bank for Reconstruction and Development (EBRD) has invested US$ 55 million in the Eurobond issuance of Rönesans Holding, one of Türkiye’s largest conglomerates.

The Eurobond has been issued as a sustainability bond, aligned with Rönesans’ Sustainable Finance Framework, and is the first sustainability bond issued in the country by a private non-financial company. The total issuance by Rönesans is US$ 350 million.

The proceeds of the Eurobond are expected to finance or refinance eligible green and social projects, while also allowing Rönesans to diversify its funding sources, optimise its debt portfolio and improve liquidity over a longer timeframe.

Rönesans has a strong drive for sustainability, aiming to achieve a net-zero holding in all projects and facilities it owns or operates by 2040. In addition, the company is committed to promoting the socioeconomic advancement of young people and reducing inequalities.

EBRD Managing Director for Sustainable Infrastructure, Nandita Parshad said: “The EBRD promotes the expansion and use of dedicated financial instruments and capital market tools to support the development of green and social infrastructure, much needed for Türkiye’s ambitious climate goals. We are confident that this landmark step by Rönesans will set a positive precedent in the market, encouraging all private-sector companies to diversify their funding for their climate ambitions.”

The EBRD is among Türkiye’s key investors, with more than €20 billion invested through 455 projects and trade finance limits since 2009, most of it in the private sector.