- Part of coordinated WBG effort to overcome extensive impact of earthquakes in Türkiye
- Up to $150 million financing package to help leading industrial group rebuild and expand sustainably
- IFC's financing supports Türkiye's post-earthquake recovery and reconstruction, helps create jobs
Istanbul, Türkiye, December 24, 2023—To help create jobs in Türkiye's earthquake-affected provinces, boost sustainable growth, and enhance competitiveness, IFC is providing up to $150 million to a leading local industrial group, Sanko Holding (Sanko), combining funding from its own account with mobilized financing.
Sanko operates predominantly in Gaziantep, the region most impacted by the February earthquakes. It is also the area's largest employer, with around 15,000 employees. IFC's investment will provide crucial—and currently scarce—long-term financing to help Sanko improve its sustainability, competitiveness, and energy efficiency, including constructing new green-building-certified manufacturing facilities and rebuilding damaged infrastructure.
IFC's financing comprises $115 million from IFC's own account and $35 million in mobilization from Finance in Motion, a global impact asset manager focused on addressing climate-linked challenges in emerging markets. The funding combines green loan and earthquake response financing.
The IFC financing is expected to create around 1,400 direct and 4,000 indirect jobs. It is part of a coordinated World Bank Group effort to overcome the impact of the earthquakes, with IFC aiming to deploy about $1 billion over two years to support relief and reconstruction efforts, channeling funding through longstanding private partners in the financial, manufacturing, and infrastructure sectors.
"We are delighted to announce the completion of another successful transaction with IFC, sealing our long-lasting partnership since the first deal made back in 1989, as proudly being one of their first clients in Türkiye," said Adil Sani Konukoğlu, Chairman of Sanko Holding. "The Green Loan Facility demonstrates both institutions' unwavering commitment to supporting sustainable growth and will expedite our transition to a circular economy model. After two devastating earthquakes in our hometown, IFC's support will meaningfully contribute to regional recovery; and we look forward to many more success together through our sustainability journey."
IFC's funding is earmarked for three Sanko Holding manufacturing companies—Sanko Tekstil, which will build a green-certified spinning mill and recycling facility; Süper Film, which will build a green-certified manufacturing facility for packaging materials; and Çimko, a cement producer, which will implement energy efficiency upgrades and increase its use of renewable energy sources and alternative fuels.
"IFC's investment in our long-term partner Sanko Holding will help bolster the region's economic resilience and earthquake recovery and reconstruction efforts," said Wiebke Schloemer, IFC Director for Türkiye and Central Asia. "It will also empower Sanko Holding to develop sustainability-focused product innovations to reduce its carbon footprint and increase exports, bringing much-needed hard currency inflows into the country."
IFC has also supported Sanko Holding in developing a green finance framework that aligns with the Green Loan Principles and Green Bond Principles and is exploring the possibility of implementing projects to support gender equality and recycling, among other areas, across Sanko's manufacturing companies. Sanko Holding is currently developing a comprehensive gender action plan to improve women's employment and close gender gaps with IFC support.
IFC has supported private sector development in Türkiye for more than 50 years, with investments of nearly $11 billion in the last decade alone. In our fiscal year ending in June 2023, we invested and mobilized over $3 billion in Türkiye. The country represents IFC's third-largest country exposure globally, with a committed portfolio of close to $4.9 billion as of November 2023.
About SANKO
Sanko is a diversified conglomerate, founded in 1904 in Türkiye. The group has well-established diverse business interests in multiple sectors including textile, flexible packaging, cement manufacturing; and energy generation that is solely focused on renewable sources. Sanko operates globally and employs more than 15,000 people mainly located in southeastern part of the country. Sanko Holding aims to deliver sustainable and innovative investments that positively impact communities in the long-term generating more than $1.7 billion consolidated annual revenues. The group plays an important role in the local economy and exports its products to more than 100 countries. For more information about Sanko and its diverse business portfolio, please visit https://www.sanko.com.tr/en/home.aspx.
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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