America News Agency

The financing will consist of an investment in rated bonds issued under Isbank’s existing Diversified Payment Rights programme and contributions from the EBRD’s Green Economy Financing Facility II (GEFF II) and Türkiye Digital Transformation Financing Facility, read the statement released by the EBRD. 

The project will underpin Türkiye’s twin transformational goals by focusing on the green and digital advancement of the country’s private sector. 

Francis Malige, Managing Director, Financial Institutions for the EBRD, said: “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.”

Addressing climate change remains a significant goal for Türkiye, which has set itself a 2053 net-zero target. To reach this emissions objective, Türkiye needs around US$ 10 billion in financing annually to 2030 in energy, transportation, construction and industry sectors.

The Türkiye GEFF II programme seeks to respond to those investment needs, building on the success of its initial run, which earmarked €500 million for green investments in the country. 

In addition to supporting sustainable investment, some financing will enable the country’s manufacturing SMEs to boost their digital capacity. Despite their significant contribution to production and sales, Turkish SMEs suffer from persistent shortfalls in access to financing and a digital maturity level that lags that of its European Union and Organisation for Economic Co-operation and Development counterparts.

The EBRD’s Türkiye Digital Transformation Financing Facility, launched in May, aims to bolster the digital transformation investments of SMEs by providing financing resources for digital investments and solutions, fostering growth and innovation.

Isbank, Türkiye’s first private commercial bank, is celebrating its centenary this year. The EBRD is one of Türkiye’s key investors, with €19.8 billion invested through 442 projects and trade finance limits since 2009, the majority of it in the private sector.