IFC program vows strong start in Turkey after $1.9 investments in 2017
International Finance Corporation (IFC), a member of the World Bank Group, says it has kicked off fiscal year 2018 in Turkey on a strong note, investing $430 million in long-term finance in Turkish companies and providing $250 million in trade finance lines to banks so far.
In a statement on Nov. 3, IFC said it continued strong support for Turkish banks to help revive the covered bonds market, boost access to finance for businesses, and introduce green mortgages.
“Turkey has an agile, flexible and entrepreneurial private sector, which has been a major driving force behind its growth,” said Tomasz Telma, IFC Director for Europe and Central Asia.
“To maintain momentum and build on the economic successes of the past decades, Turkey needs to further develop its strengths and tackle its challenges, including increasing financial inclusion, global integration, and competitiveness. We remain committed to continuing to help Turkey reach its development goals,” Telma added.
IFC’s work this fiscal year builds on strong results in fiscal year 2017, which ended on June 30, in which it delivered $1.2 billion in long-term finance and equity investments, as well as $860 million in short-term trade finance to support Turkey’s private sector, the institution stated.
IFC invested a total of $300 million in Turkish lira equivalent in covered bonds issued by Yapı Kredi Bank and Akbank in October, to help boost the residential mortgage sector, including the development of “green” buildings, according to the statement.
IFC also provided a seven-year loan of up to $100 million to Tüpraş, Turkey’s only oil refiner, and the largest industrial company to support the company’s investment plans concerning environmental upgrades, efficiency improvement and Research & Development activities.
IFC also arranged a $25 million loan to Nobel İlaç, a leading pharmaceutical company and the country’s only net exporter in the sector, to help meet growing demand for innovative, affordable, and high-quality medicine.
IFC also made a strong contribution to Turkey’s healthcare public-private-partnership program in FY17, becoming an anchor investor with an 80 million euro in a bond issue to support the development of a 1,000-bed integrated health campus in Elazığ.
Turkey is IFC’s second-largest country exposure globally with a $5.9 billion committed portfolio, and IFC’s office in Istanbul, established 30 years ago, is its largest outside Washington, D.C. and an operational hub, according to the statement.
Since its first investment over half a century ago, IFC has supported Turkey’s private sector with $14.2 billion in investments in more than 350 projects.
The World Bank Group and the government of Turkey have renewed their partnership with the introduction of a new Country Partnership Framework (CPF), approved in August by the World Bank’s Board of Executive Directors.