The European Bank for Reconstruction and Development (EBRD) is extending €100 million in financing to Türkiye Is Bankasi (Isbank), Türkiye’s largest private bank, to support private-sector investments in the green economy and digital transformation of small and medium-sized enterprises (SMEs) in the manufacturing sector.
This financing package includes an investment in rated bonds issued under Isbank’s Diversified Payment Rights programme, bolstered by contributions from the EBRD’s Green Economy Financing Facility II (GEFF II) and Türkiye Digital Transformation Financing Facility.
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The initiative is aimed at propelling Türkiye’s dual goals of environmental sustainability and digital advancement in its private sector. Addressing climate change is a significant objective for Türkiye, which has committed to achieving net-zero emissions by 2053. Reaching this target requires approximately US$ 10 billion in annual financing until 2030 across various sectors, including energy, transportation, construction, and industry.
Building on the success of its predecessor, which allocated €500 million for green investments, the Türkiye GEFF II programme is designed to meet these extensive investment needs. Additionally, a portion of the new financing will support the digital enhancement of the country’s manufacturing SMEs. Despite their substantial role in production and sales, Turkish SMEs face persistent funding challenges and lag behind European Union and Organisation for Economic Co-operation and Development counterparts in digital maturity.
Launched in May, the EBRD’s Türkiye Digital Transformation Financing Facility aims to advance the digital transformation of SMEs by providing financial resources for digital investments and solutions, fostering growth and innovation.
This financing comes as Isbank, Türkiye’s first national bank, celebrates its centenary. Francis Malige, Managing Director, Financial Institutions for the EBRD, remarked, “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.”
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By GlobalDataMs. Ebru Ozsuca, Isbank Deputy Chief Executive, added, “Celebrating our centenary in 2024, we are once again honoured and proud to mark this important year with another successful transaction with EBRD. Isbank will continue to support the Turkish economy by meeting the financing needs of the green economy and facilitating the digital transformation of SMEs in Türkiye.”
The EBRD remains one of Türkiye’s key investors, having invested €19.8 billion across 442 projects and trade finance limits since 2009, with the majority of investments directed towards the private sector.
