The European Bank for Reconstruction and Development (EBRD) has announced a significant financing agreement with Türkiye Is Bankasi (Isbank), Türkiye’s largest private bank. The €100 million investment will be allocated to support green economy investments and digital transformation initiatives for small and medium-sized enterprises (SMEs) in the country.
This financing will be structured as an investment in rated bonds issued under Isbank’s existing Diversified Payment Rights program. It will include contributions from the EBRD’s Green Economy Financing Facility II (GEFF II) and Türkiye Digital Transformation Financing Facility. The project aims to bolster Türkiye’s twin transformational goals by focusing on the green and digital advancement of the country’s private sector.
Türkiye has set ambitious climate targets, including a 2053 net-zero emissions goal. To achieve this objective, the country requires significant financing, estimated at around US$10 billion annually until 2030, particularly in sectors such as energy, transportation, construction, and industry. The Türkiye GEFF II program aims to address these investment needs, building on the success of its initial phase, which earmarked €500 million for green investments in the country.
In addition to supporting sustainable investments, a portion of the financing will enable Türkiye’s manufacturing SMEs to enhance their digital capabilities. Despite their significant role in production and sales, Turkish SMEs face challenges in accessing financing and lag behind their European Union and Organisation for Economic Co-operation and Development counterparts in digital maturity.
The EBRD’s Türkiye Digital Transformation Financing Facility, launched in May, aims to address these challenges by providing financing resources for digital investments and solutions, fostering growth and innovation among SMEs.
Isbank, Türkiye’s first national bank, is commemorating its centenary in 2024. Ebru Ozsuca, Isbank Deputy Chief Executive, expressed pride in this partnership, stating, “Celebrating our centenary in 2024, we are once again honored and proud to mark this important year with another successful transaction with EBRD. İşbank will continue to support the Turkish economy by way of meeting the financing needs of the green economy as well as SMEs’ digital transformation in Türkiye.”
Francis Malige, Managing Director, Financial Institutions for the EBRD, emphasized the significance of the partnership, stating, “We are delighted to mark Isbank’s 100th anniversary with this signing. This strategic financing will play a crucial role in advancing the digital maturity of Turkish manufacturing SMEs and fuel investments in green projects, in line with our commitment to sustainable development and technological innovation in Türkiye.”
The EBRD remains one of Türkiye’s key investors, with €19.8 billion invested through 442 projects and trade finance limits since 2009, primarily in the private sector.
Discover more from SolarQuarter
Subscribe to get the latest posts sent to your email.
