Istanbul, Turkey, September 8, 2021—In a bid to support private sector development and help companies impacted by the COVID-19 pandemic sustain operations, IFC invested around $1.1 billion in Turkey—including $410 million mobilized from other investors—between July 2020 and June 2021, to help preserve jobs, build resilience, and accelerate economic recovery.
IFC's investments in Turkey focused on strategic priorities including boosting access to finance, strengthening capital markets, fostering innovation, tackling climate change, increasing the country's competitiveness, and helping existing clients weather the negative impacts of the pandemic. In addition, IFC facilitated over $670 million of cross-border trade with Turkey through banks participating in its Global Trade Finance Program.
To boost access to finance and promote financial inclusion, IFC continued to partner with financial institutions to address the financing needs of underserved borrowers, preserving jobs and contributing to the country's recovery efforts. The highlights included a $150 investment in a Diversified Payment Rights issuance of DenizBank A.Ş. to help micro, small, and medium enterprises (MSMEs) in the agribusiness sector while supporting the development of Turkey's capital markets. Moreover, IFC's $50 million financing to Yapi Kredi Leasing aimed to support the small and medium enterprises (SMEs) impacted by the pandemic, with half the funds earmarked for climate-related initiatives.
Photo: Arif Miletli
To support further development and modernization of the automotive industry in Turkey, IFC provided a $150 million loan to Ford Otomotiv Sanayi A.Ş. (Ford Otosan). IFC's financing will allow Ford Otosan to expand its production capacity, launch new models—including electric and hybrid versions—and boost efficiency while creating jobs and increasing the nation's competitiveness.
Further, IFC provided a Euro-denominated $75 million equivalent loan to Türkiye Şişe ve Cam Fabrikaları A.Ş. (a glass and chemicals production company), and a €10 million loan to Nobel Ilac (a pharmaceutical company)—both long-standing clients in Turkey exporting to global markets—to help them maintain operations, implement investment programs, and save jobs during the pandemic.
To conserve water and improve public services in the fast-growing Izmir, Turkey's third-largest city, IFC financed a water treatment plant and the installation of sewers and water pipes—running hundreds of kilometers—through a sustainability-linked long-term loan denominated in Turkish Lira equivalent to $30 million. The financing marks the first non-sovereign guaranteed long-term commercial loan denominated in Turkish Lira by an international financial institution to a municipal borrower in the country and IFC's first sustainability-linked infrastructure loan globally. The sustainability feature of the financing provides financial incentives to Izmir Water and Sewerage Administration (IZSU) to hire more women in jobs where they are under-represented.
"Turkey is the second-largest country for IFC investments globally," said Wiebke Schloemer, IFC Director for Europe and Central Asia. "We are fully committed to helping the private sector in the country drive economic growth and job creation through increased competitiveness and innovation, both during and after the COVID-19 pandemic."
Since the outbreak of the pandemic, IFC has focused its efforts on helping the private sector mitigate the economic fallout. In March 2020, IFC announced $8 billion in global fast-track financing to help companies affected by COVID-19. In Europe and Central Asia, IFC stepped up to support its existing clients and help them deal with the impacts of the crisis.
Arnaud Dupoizat, IFC Country Manager for Turkey, said: "IFC continues to invest in impactful projects with a focus on increasing access to finance and tackling climate change while spurring economic growth, competitiveness, and innovation in the country."
IFC has supported private sector development in Turkey for over 50 years, with a committed exposure of over $4.3 billion in the country as of June 2021.
For more information about IFC's COVID-19 response, please visit www.ifc.org.
About IFC
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2021, IFC committed a record $31.5 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of the COVID-19 pandemic. For more information, visit www.ifc.org.
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