The European Bank for Reconstruction and Development (EBRD) invested €1.63 billion in Türkiye in 2022, the highest volume of annual investment in all the economies where the Bank operates.
This brings the Bank’s cumulative investment in the country to almost €17 billion, 85 per cent of which has been in the private sector.
Over half of the Bank’s 2022 investments in Türkiye were part of the Bank’s Green Economy Transition, focusing on projects that aimed to accelerate its shift to a greener, low carbon and resilient economy.
Arvid Tuerkner, EBRD Managing Director for Türkiye, said: “As volatility persists in global markets, the EBRD’s financing continues to be a significant source of support for Türkiye’s private sector. We are proud to say that over half of the annual investment we delivered in the country last year focused on the green transition, which will be instrumental in creating more jobs and strengthening the resilience of Turkish companies.
“Our commitment to an inclusive, green economy continues to dominate our journey in the country.”
Türkiye ratified the Paris Agreement in 2021, and currently has a net-zero target of 2053.
Electric vehicles and renewables highlight green focus
Projects in Türkiye that focused on green financing, energy sector transformation, decarbonisation and infrastructure were high on the Bank’s agenda in 2022.
EBRD efforts supported expanding green financing in the country, with the announcement of a €500 million Green Economy Financing Facility in 2022.
Loans extended under the framework included a €53.5 million loan to Turkish Industrial and Development Bank (TSKB), a €25 million loan to QNB Finans Leasing and €50 million to Yapi Kredi Leasing to finance projects that focus on energy efficiency, renewables and climate resilience measures.
One of the highlights of the year was the EBRD’s arrangement of a €200 million loan to Ford Otosan, US automaker Ford’s joint venture with Türkiye’s Koc Holding, sharing financing with commercial lenders.
Supporting Türkiye on its journey to become a European hub for commercial electric vehicles (EVs), the investment is set to finance the company’s investment programme for upgrading its next generation of commercial vehicles, including EVs.
The EBRD also continued to support renewables in Türkiye’s energy sector with key projects including a loan of US$ 45 million to Galata Wind Enerji to increase wind capacity, and a US$ 100 million loan to Adnan Polat Enerji to develop renewable energy capacity.
Public sector investments also reflected the Bank’s green priorities, for example when it provided Istanbul Metropolitan Municipality with funding of €75 million for the construction of the Goztepe-Atasehir-Umraniye metro line, aiming to back sustainable solutions and decarbonisation strategies in the city.
The funds were an extension to a loan of €97.5 million provided to the city back in 2019.
The Bank also supported both Istanbul and Izmir with their Green City Action Plans, focusing on environmental investments and policy actions most suited to addressing environmental challenges.
Support for women entrepreneurs hits 10th anniversary
Gender equality was a key focus in 2022, as Türkiye became the country with the largest number of projects promoting female entrepreneurs.
This was in the year the EBRD marked a trailblazing decade of support for Turkish women under its Women in Business programme, with €900 million earmarked for the programme.
Under the programme the Bank also collaborated with partners and financial institutions to work towards expanding financial opportunities for women.
Among other loans, it provided US$ 127 million in funding to Isbank for on-lending to women-led businesses, and a US$ 50 million syndicated loan to Akbank to improve the ability of the country’s banking sector to finance women-led businesses.
As well as providing funding, the Bank continued to be involved with projects that allowed mechanisms of risk-sharing, mentorship and training aimed at creating equal opportunities for women.
Together with state institutions, development banks, business associations and professional women’s networks, the Bank further worked on its 2021 roadmap to promote greater representation of women in corporate decision-making.