The European Bank for Reconstruction and Development (EBRD) invested €1.63 billion ($1.7 billion) in Türkiye in 2022, the highest volume of annual investment in all the economies where the bank operates, according to a statement from the EBRD on its investment results of last year in the country.
Türkiye accounted for €1.63 billion of the EBRD's total investment in 2022 reaching over €13 billion for the first time.
Türkiye has also become the bank's largest market for the third consecutive year.
With last year's investment in Türkiye, the bank's cumulative investment in the country has neared €17 billion, 85% of which has been in the private sector, said the statement.
"Over half of the EBRD's 2022 investments in Türkiye were part of the Bank's Green Economy Transition, focusing on projects that aimed to accelerate its shift to a greener, low carbon and resilient economy," the statement said.
"As volatility persists in global markets, the EBRD's financing continues to be a significant source of support for Türkiye's private sector," Arvid Tuerkner, EBRD Managing Director for Türkiye, was quoted as saying in the report.
"We are proud to say that over half of the annual investment we delivered in the country last year focused on the green transition, which will be instrumental in creating more jobs and strengthening the resilience of Turkish companies. Our commitment to an inclusive, green economy continues to dominate our journey in the country."
The green transition has accelerated in Türkiye in the last few years, particularly with the growth of renewables deployment. The country ratified the Paris Agreement in 2021 and put a net-zero target for 2053.
According to the statement, the bank supported expanding green financing in the country with the announcement of a €500 million Green Economy Financing Facility last year.
The loans under the framework included a €53.5 million loan to Turkish Industrial and Development Bank (TSKB), a €25 million loan to QNB Finans Leasing and €50 million to Yapi Kredi Leasing to finance projects that focus on energy efficiency, renewables and climate resilience measures.
Electric vehicles and renewable capacity growth high on 2022's agenda
The bank also provided Ford Otosan, US automaker Ford's joint venture with Türkiye's Koc Holding, with a €200 million loan, sharing financing with commercial lenders.
"Supporting Türkiye on its journey to become a European hub for commercial electric vehicles (EVs), the investment is set to finance the company’s investment programme for upgrading its next generation of commercial vehicles, including EVs," the EBRD said.
Last year's investments also saw support in the country's renewable energy sector, including a loan of $45 million to Galata Wind Enerji for capacity growth and a $100 million loan to Adnan Polat Enerji to develop renewable energy capacity.
The bank provided Istanbul Metropolitan Municipality with funding of €75 million for the construction of the Goztepe-Atasehir-Umraniye metro line, aiming to back sustainable solutions and decarbonization strategies in the city.
The funds were an extension to a loan of €97.5 million provided to the city back in 2019, according to the statement.
Gender equality key focus
The EBRD said gender equality became a key focus in 2022 as Türkiye became the country with the largest number of projects promoting female entrepreneurs.
"This was in the year the EBRD marked a trailblazing decade of support for Turkish women under its Women in Business program, with €900 million earmarked for the program. Under it, the bank also collaborated with partners and financial institutions to work towards expanding financial opportunities for women," said the statement.
The bank said it provided $127 million in funding to Isbank for on-lending to women-led businesses and a $50 million syndicated loan to Akbank to improve the ability of the country's banking sector to finance women-led businesses.
"The EBRD continues to focus on strengthening financial resilience, fostering the knowledge economy, promoting inclusion and accelerating the shift to the green economy," said the statement.
