• Türkiye Wealth Fund has created its first Sustainable Finance Framework to support future green, blue and social bonds, loans and other sustainable debt instruments.
• The framework covers six green project categories and one social category, spanning renewable energy, transport, buildings, water, efficiency and disaster resilience.
• Sustainable Fitch confirmed alignment with major international bond, loan and blue finance standards, strengthening the framework’s credibility with global investors.

Türkiye Wealth Fund has established its inaugural Sustainable Finance Framework, creating a formal structure for financing environmental and social projects across the sovereign fund and its portfolio.

BBVA advised the fund as Co-Sustainability Structuring Advisor. The framework will support future bonds, loans and other sustainable finance instruments issued, arranged, guaranteed or supported by Türkiye Wealth Fund.

For the country’s sole sovereign wealth fund, the framework provides a common financing architecture across a diversified portfolio. It also gives international investors greater visibility over how future sustainable debt proceeds may be allocated and governed.

Seven categories define eligible investment

The framework identifies six eligible green project categories and one social category.

Green financing may support clean transportation, sustainable water and wastewater management, pollution prevention and control, green buildings, renewable energy and energy efficiency.

The social category focuses on access to essential services linked to emergency preparedness, disaster response, recovery infrastructure and related services.

Together, the categories give Türkiye Wealth Fund scope to mobilise capital across both infrastructure and broader portfolio investments.

BBVA supported the fund in identifying eligible uses of proceeds, assessing activities across its portfolio and drafting the framework. It also worked with Sustainable Fitch during the external review process.

“This inaugural Sustainable Finance Framework marks an important milestone in Türkiye Wealth Fund’s sustainability journey and strengthens its ability to channel capital towards initiatives with tangible environmental and social impact. Supporting Türkiye Wealth Fund in its development reflects BBVA’s role as a strategic sustainability partner, helping clients translate their priorities into robust and credible financing solutions while meeting investors’ and lenders’ growing expectations around rigour and transparency”, says Iván Poza, Global Head of Public sector at BBVA CIB.

Sustainable Fitch backs international alignment

Sustainable Fitch issued a Second Party Opinion confirming alignment with several major international sustainable finance standards.

These include the ICMA Green Bond Principles 2025, Social Bond Principles 2025 and Sustainability Bond Guidelines 2021.

The assessment also covers the 2025 Green Loan Principles and Social Loan Principles developed by the LMA, LSTA and APLMA. Sustainable Fitch additionally assessed the framework against the IFC Guidelines for Blue Finance 2.0.

External verification has become increasingly important as investors scrutinise the credibility of labelled sustainable debt. Clear eligibility criteria, reporting standards and governance structures can determine whether issuers gain access to a broader institutional investor base.

For sovereign-linked institutions, those expectations carry additional weight because financing frameworks can influence national infrastructure investment and wider capital market development.

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Sovereign fund links capital to national goals

Türkiye Wealth Fund said the framework will support its broader sustainability strategy and strengthen alignment between investment decisions and national priorities.

“Establishing TWF’s Sustainable Finance Framework has been a key priority for the Fund, reflecting our ambition to support Türkiye’s sustainability objectives as the country’s sole sovereign wealth fund. We are pleased that the Framework provides a strong foundation for TWF’s sustainable transformation, enabling us to further align our investments and capital mobilization efforts with international best practices. We are also pleased to have partnered with BBVA, our Co-Sustainability Structuring Advisor, throughout this important initiative. This collaboration has once again demonstrated the value of working with the right business partners as we continue to advance our sustainable finance agenda and contribute to Türkiye’s long-term sustainability goals”, says Dr. Mahmut Kayacık, Executive Director (CFO) at Türkiye Wealth Fund.

The framework does not itself constitute a financing transaction. Instead, it establishes the rules under which Türkiye Wealth Fund can structure future sustainable debt.

That distinction matters for investors. The credibility of subsequent bond and loan issuances will depend on project selection, allocation discipline, impact reporting and continued adherence to the framework.

For Türkiye, the initiative adds another potential channel for directing institutional capital toward energy transition, infrastructure resilience and social investment. It also places the sovereign wealth fund within a growing global group of state-backed institutions using sustainable finance frameworks to connect national development priorities with international capital markets.