Istanbul, Türkiye, August 31, 2022—IFC invested around $1 billion in Türkiye to support private sector development in fiscal year 2022 against a volatile economic environment—including $425 million mobilized from other investors—helping to boost economic growth, spur job creation, and increase exports.
In line with its strategic priorities, IFC's investments in Türkiye between July 2021 and June 2022 focused on increasing access to finance, boosting competitiveness, addressing the gender gap, and tackling climate change. In addition, IFC facilitated over $800 million of cross-border trade through banks participating in its global trade finance program.
IFC's projects to boost financial inclusion included a $100 million investment in Türkiye Sinayi Kalkinma Bankasi (TSKB), the country's largest development bank, to increase funding and employment opportunities for women. IFC also provided a $50 million loan to Akbank T.A.S. to provide crucial financing to smaller businesses in more than 20 of Türkiye's least-developed provinces.
To enhance competitiveness, IFC provided $110 million in long-term financing to Kordsa, which manufactures tire reinforcement materials and composites, to help the company further integrate into global automotive and aviation value chains and boost its productivity. Similarly, IFC provided Ege Endüstri, an automotive components manufacturer, with a 40-million-euro loan to increase its manufacturing capacity and develop new products for electric vehicles. IFC also signed an advisory services project with the Ministry of Industry and Trade and YASED, Türkiye's International Investors' Association, to support the linkages between automotive original equipment manufacturers and Turkish firms including for the development of electric vehicles.
"Türkiye is the third largest country for IFC investments globally, making it a critical market for us," said Wiebke Schloemer, IFC Director for Türkiye and Central Asia. "In a period where access to long-term finance is becoming harder, we are committed to helping Türkiye's private sector drive economic growth and job creation through impactful projects that increase competitiveness and innovation."
IFC also provided a $75 million loan denominated in Turkish lira to Osmangazi Elektrik Dagitim A.S. (OEDAS), a subsidiary of Zorlu Enerji, an existing client and one of Türkiye's leading power companies. The financing will support a $350 million capital expenditure program to upgrade and expand the company's electricity distribution network in western Türkiye, benefiting nearly 3 million residents.
Arnaud Dupoizat, IFC Country Manager for Türkiye, said: "Private sector expertise and capital are vital to spur development, help create jobs, and tackle longstanding challenges like climate change. We are committed to supporting the development of private sector companies, including those in the municipalities, to facilitate economic growth and job creation, and help Türkiye meet its climate goals".
IFC has supported private sector development in Türkiye for more than 50 years, with investments totaling almost $10 billion in the last decade alone, and a committed portfolio of close to $4 billion as of June 2022.
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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