Istanbul, Türkiye, August 29, 2023—IFC invested over $1.46 billion in Türkiye to support private sector development in fiscal year 2023—in addition to $662 million mobilized from other investors—helping to accelerate economic growth, boost job creation, support exports, and tackle climate change amid a challenging macroeconomic environment.
In line with IFC's strategic priorities, its investments in Türkiye between July 1 2022 and June 30 2023 focused on enhancing the country's competitiveness, boosting access to finance, addressing the gender gap, and fighting climate change. In addition, IFC facilitated $966 million of cross-border trade through banks participating in its global trade finance program.
IFC's projects to improve competitiveness, enhance transport infrastructure, and reduce greenhouse gas emissions included a $200 million financing package to Marport, helping to extend and refurbish terminal berths at this critical shipment and gateway hub for Türkiye and the Black Sea region. IFC's €150 million loan to Fraport TAV aims to support the upgrade of Antalya Airport, improving transport connectivity and enhancing Türkiye's competitiveness as a global tourism destination.
IFC also supported leading Turkish manufacturers in their efforts to increase global competitiveness and growth. A $90 million green investment will help Assan Alüminyum, a manufacturer of aluminum flat-rolled products, enhance production efficiency, reduce its carbon footprint, and expand its processing capacity. IFC has also provided Arçelik, a leading global home appliances manufacturer, with €120 million to help fund its working capital requirements in Türkiye and support its global growth strategy.
"It is crucial for IFC to support Türkiye during these challenging times. As the country recovers from the recent earthquakes and continues to address economic uncertainty, IFC continues to support private sector development in Türkiye and boost the country's competitiveness by investing in crucial infrastructure, bolstering the manufacturing sector, supporting exports, and increasing access to critical finance," said Wiebke Schloemer, IFC Director for Türkiye and Central Asia.
To increase access to climate finance for small businesses, IFC provided a landmark blue and green loan to Yapı Kredi Leasing. The groundbreaking $120 million investment aims to promote sustainable business activities and help Türkiye address its substantial climate financing gap. IFC also provided a targeted $125 million investment in DenizBank that will help address the critical financing needs of Türkiye's farmers, preserve jobs, and aid economic recovery, with a particular focus on earthquake-impacted areas.
IFC also invested $100 million in a diversified payment rights issuance from Türkiye İş Bankası A.Ş. (İşbank) to address a lack of access to housing finance in Türkiye, with 35 percent of IFC's financing earmarked for green mortgages.
IFC has supported private sector development in Türkiye for more than 50 years, with investments of nearly $11 billion in the last decade alone. Türkiye represents IFC's third-largest country exposure globally, with a committed portfolio of close to $4.7 billion as of June 2023.
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 2023, IFC committed a record $43.7 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 global compounding crises. For more information, visit www.ifc.org.
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