Financing Adaptation for Growth

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The project will support firms’ investments in climate adaptation and resilience to preserve and enhance their growth potential. The financing instrument is a EUR 360 million IBRD Loan Guarantee to TSKB to enable raising up to EUR 600 million in aggregate from international commercial banks with a tenor of approximately 10 years. The project is proposed to have one component that will utilize the commercial financing raised by TSKB with the support of the IBRD guarantee to extend sub-loans exclusively to firms that will implement adaptation-related measures. Eligible firms will include SMEs and mid-caps that need to implement adaptation measures to preserve their growth potential. Potential firms will be evaluated against the AdapTool (to be developed through the project) which will identify climate impacts and vulnerabilities the firm is exposed to, given its location, sector and characteristics (including size and capabilities), and what kind of measures and investments would enhance its resilience. Assuming that adaptation-related needs are identified, TSKB would then work with the firm to agree on the needed measures and investments to enhance their resilience.