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Financing ISBank to support green and digital private sector investments -
Investment in bonds under Isbank’s Diversified Payment Rights Program -
Project to support strengthening the competitiveness of small and medium-sized enterprises
The European Bank for Reconstruction and Development (EBRD) is providing a loan of €100 million (equivalent to US$100 million) to Türkiye Is Bankasi (Isbank), Turkey’s largest private bank, for on-lending to private clients for investments in the green economy and the digital transformation of manufacturing small and medium-sized enterprises (SMEs).
The loan consists of an investment in rated bonds issued under İsbank’s existing Diversified Payment Rights Programme, and also includes contributions from the EBRD’s Green Economy Financing Facility II (GEFF II) and the Turkey Digital Transformation Financing Facility.
The project will support Turkey’s twin transformation goals by focusing on promoting the greening and digitalization of Turkey’s private sector.
Tackling climate change remains a key objective for Turkey, which aims to achieve net-zero emissions by 2053. To reach this emissions target, Turkey needs around USD 10 billion per year through 2030 in sectors such as energy, transport, construction and industry.
The Türkiye GEFF II programme aims to address these investment needs, building on the success of the first run, which allocated €500 million for green investments in the country.
In addition to supporting sustainable investments, part of the funds will also be used to improve the digital capabilities of Turkey’s manufacturing SMEs, which despite their significant contribution to production and sales, suffer from a chronic lack of access to financing and lag behind their European Union and Organization for Economic Cooperation and Development counterparts in terms of digital maturity.
The EBRD’s Turkey Digital Transformation Financing Facility, launched in May, aims to boost digital transformation investments among SMEs by providing a source of financing for digital investments and solutions, and stimulating growth and innovation.
İsbank, Turkey’s first private commercial bank, is celebrating its 100th anniversary this year.
Francis Marij, EBRD Managing Director of Financial Institutions, said: “We are pleased to celebrate İsbank’s 100th anniversary with this agreement. This strategic financing will play a key role in increasing the digital maturity of Turkish SMEs’ manufacturing sector and stimulating investment in green projects, in line with our commitment to Turkey’s sustainable development and innovation.”
The EBRD is one of Turkey’s leading investors, having invested €19.8 billion through 442 projects and trade finance lines since 2009, the majority of which is in the private sector.
