Ashurst advises AIIB on pioneering Türk Eximbank green transition facility

Global law firm Ashurst has advised the Asian Infrastructure Investment Bank (AIIB) on a US$200 million partial debt guarantee to support 70% of Türk Eximbank’s inaugural green loan, underpinned by a counter-guarantee from the Ministry of Treasury and Finance of Türkiye. It is AIIB’s inaugural partial debt guarantee for a commercial debt facility.

The transaction supports Türk Eximbank in providing long-term financing to Turkish exporters involved in renewable energy and enhancements in energy and water efficiency. The project emphasises inclusion, particularly supporting enterprises with significant female participation. AIIB mobilized close to US$300 million of 10-year private capital provided by ING Bank, Société Générale and Standard Chartered Bank for this project, in line with its priorities to mobilise private capital and invest in green infrastructure. The loan is anticipated to fully qualify as climate mitigation finance, and is an exemplary case of blended financing between private sector banks and strategic multilateral financing institutions.

Ashurst's Projects & Energy Transition team acting for AIIB was led by partner Tom Longmuir and comprised senior associates Joe Newton and Samia Khennous, together with associate Rohan Last. Partner Kerion Ball advised on matters relating to the EU Capital Requirements Regulation.

Partner Tom Longmuir said, "We are pleased to have assisted AIIB in successfully mobilising private capital for this important green transition financing. As well as being AIIB's inaugural commercial bank debt guarantee, the transaction deploys an innovative structure, providing multi-currency coverage on a first loss and pari passu basis across tranches, with AIIB adapting coverage to cater for differing investor appetite. This innovative facility will help to meet important social goals in Türkiye."