Istanbul, Turkey, September 26, 2016—IFC,
a member of the World Bank Group, invested $1.8 billion in Turkey last
fiscal year, helping to improve municipal services, combat climate change,
develop local capital markets, bolster supplies of renewable energy, and
support smaller businesses.
Alongside those commitments, IFC also advised businesses and government
bodies in a host of areas, from upstream advice to Turkish municipalities
on technologies, environmental and social issues, business models and financing
structures to technical assistance to three Turkish clients in improving
their corporate governance systems. The work was part of an effort to leverage
the creative force of Turkey's private sector to combat poverty and drive
economic development. During the 2016 fiscal year, which ended on June
30, IFC invested in 18 projects, providing private Turkish firms with a
mix of equity investments, long-term loans, interest rate swaps, and trade
finance. It marked the fourth consecutive year IFC had set an institutional
record for investments in Turkey.
“Our program remains strong despite a challenging year for the country's
private sector,” said Aisha Williams, IFC Country Manager for Turkey.
“As the financing environment gets tighter for emerging markets globally,
we see more demand for IFC’s services. In line with our strategy in Turkey,
we continued to support the country's development goals by working with
our clients across all industries.”
IFC's landmark commitments last fiscal year included:
- Equity investments in two Turkish banks -
Fibabank and Odeabank - designed to help smaller business access loans
and other vital forms of financing;
- A $215 million equity investment in Ronesans
Holding, one of Turkey's largest construction companies and specialist
in infrastructure development;
- A 110 million euro financing package for
the Istanbul Metropolitan Municipality, to support the construction of
a new metro line;
- $370 million in short-term loans to support
trade finance under IFC’s Global Trade Finance Program; and
- An equity investment in renewable power company
Afken Energy, which will help the firm triple its generating capacity.
The investment was part of $455 million IFC committed in Turkey last year
to help combat climate change.
With a total portfolio of $4.8 billion, Turkey represents the second-largest
country exposure for IFC globally. IFC’s office in Istanbul, established
30 years ago, is its largest outside of the institution's Washington, D.C.
headquarters and the operational hub for IFC’s activities in Europe, Central
Asia, and Middle East, and North Africa.
IFC, a member of the World Bank Group, is the largest global development
institution focused on the private sector in emerging markets. Working
with 2,000 businesses worldwide, we use our six decades of experience to
create opportunity where it’s needed most. In FY16, our long-term investments
in developing countries rose to nearly $19 billion, leveraging our capital,
expertise and influence to help the private sector end extreme poverty
and boost shared prosperity. For more information, visit www.ifc.org