IFC invests $1.1 bln in Turkey in 2018 fiscal year
IFC, a member of the World Bank Group, has said it expanded operations in Europe and Central Asia with investment commitments that reached $2.9 billion, driving the diversification of the region’s economies, promoting access to finance for small businesses and tackling climate change, with Turkey receiving the largest commitment with $1.1 billion in the region.
IFC invested $2.26 billion from its account and mobilized another $0.68 billion from other investors during its fiscal year 2018, which ended on June 30, it said in a statement on Sept. 18.
IFC also supported $1.8 billion of cross-border trade in the region through 28 banks participating in its global trade finance program, according to the statement.
Wiebke Schloemer, IFC’s director for Europe and Central Asia, said that for the coming years IFC’s focus on the region will be “on supporting the development of the fledging private sector in some of the poorest and conflicted-affected countries in the region while also continuing to work in middle income countries to promote innovation and competitiveness, energy efficiency and sustainable urban infrastructure.”
IFC’s largest commitments during the last fiscal year were Turkey ($1.1 billion), Romania ($336.4 million), Serbia ($190.5 million), Ukraine ($129.1 million) and Kazakhstan ($111.5 million), it said, adding that Turkey is currently IFC’s second largest investment destination globally.
“In fiscal year 2018, IFC delivered a strong program in Turkey, investing $1.1 billion in long term finance including mobilization. IFC also committed $938 million to Turkish banks under its Global Trade Finance Program [GTFP], broadening access to finance for companies,” the IFC said.
“IFC’s long term financing in Turkey focused on supporting Turkey’s development priorities in line with the World Bank Group country partnership strategy. In the financial sector, IFC provided access to finance for small to mid-sized businesses, promoted local capital market development and supported energy efficiency and renewable energy financing with Turkish banks Yapı Kredi Bank, Akbank, İşbank, TSKB,” it added.
With Garanti Bank, IFC launched its first gender bond investment globally, supporting women entrepreneurs and women-owned businesses, according to the statement.
IFC also said it provided support to infrastructure and the energy sector in Turkey.
Among a series of IFC loans, the loan to the Antalya municipality in the Mediterranean region for the new tram line is helping to expand the city’s public transportation network. IFC also joined forces with other international institutions to finance improvements in the electricity distribution network in Turkey’s Osmangazi region in Turkey’s west through its investment in Osmangazi Elektrik Dağırım A.Ş. (OEDAŞ), helping to upgrade, modernize and expand the distribution network.
IFC added it continued to support export-oriented Turkish companies to increase their competitiveness. For instance, IFC provided a loan to Tüpraş, Turkey’s oil refiner and the largest industrial company, to support the company’s investment plans concerning environmental upgrades, efficiency improvement and research and development activities.