Improving the quality of city life is and will continue to be one of the most important global development challenges. Building sustainable cities that offer clean air and water, relatively green buildings and accessible transportation takes great
Healthcare spending, which represents about 10 percent of global GDP, is rising faster than any other expense due to increasing demand for treatment, changing demographics and epidemiological trends, and advances in medical technology.
IFC’s investments in Turkey are focused on energy, municipal and transport infrastructure, and financial institutions, with an emphasis on energy efficiency, access to finance for SMEs and women entrepreneurs, deepener capital markets, improved private healthcare and education, and enhanced competitiveness for Turkish firms, including expansion to other emerging markets. Through its investments, IFC continues to offer longer maturity, higher environmental and social standards, better corporate governance, and its considerable global knowledge and experience.
In Turkey, IFC has had two consecutive record years in terms of investment, as we promote capital markets development, boost foreign trade, and support infrastructure, helping Turkish companies increase competitiveness and extend their impact outside Turkey.
During fiscal year 2014, IFC committed a record $1.24 billion in investments in 23 projects, up from $985 million the previous year,including mobilizations and syndications. In the last fiscal year, IFC focused on:
Fostering sustainable cities and their access to private capital: In light of Turkey’s rapid urbanization, IFC extended €55 million and facilitated MIGA’s guarantee (95 percent) for ING’s €55 million loan to the Izmir Municipality to finance the construction and rolling stock for two tramway lines. This was IFC’s third engagement with the Municipality in less than two years, following support for improved wastewater management, improved traffic management and emergency response systems, and public transport.
Facilitating capital markets development: To help ease access to capital markets, IFC participated as an anchor investor in the bond market debuts of Sisecam and Mersin International Port, which was the first infrastructure bond in Turkey. These projects are expected to have a strong demonstration effect and facilitate access to local and international bond markets for other Turkish issuers. This follows IFC’s support to issuances of Diversified Payment Rights and Covered Bonds (the first in Turkey) by financial institutions.
Supporting Women Entrepreneurs: IFC continued to support the “Banking on Women” program, with a $30 million loan to Fibabanka and a $50 million to Sekerbank for lending to women-owned SMEs. Last year, IFC also hosted a conference, “Investing in Turkey’s Women Entrepreneurs,” as part of its broader effort to help remove barriers to women entrepreneurship in Turkey.
Supporting Turkey to become a regional leader: During the fiscal years 2012-14, IFC invested $211 million to support Turkish companies to expand into other developing countries. Supporting Turkish companies to expand regionally and globally is a strategic priority for IFC.
Supporting PPPs: IFC is supporting the public-private partnership (PPP) program of the Ministry of Health. IFC recently provided €35 million in loans, and mobilized another €136 million, to ADN PPP Sağlık Yatırım to build, finance, and maintain a health campus in Adana as part of a nation-wide PPP program to provide improved public healthcare services. IFC is cooperating closely with IBRD, which has offered to help the government develop a PPP framework.
Infrastructure: Turkey has a very ambitious program for infrastructure development. The energy sector remains one of the most important sectors for the Turkish economy. Energy generation, energy security, energy efficiency, and climate change mitigation are just some of the many facets influencing the dynamic efforts being carried out by Turkish officials as they work to meet the country’s energy demands. IFCcontinues to finance power generation to meet the country’s growing need. In the last five years, more than $3 billion has been leveraged by IFC to support private-sector efforts designed to increase energy generation, improve energy efficiency, and mitigate the impact of climate change.
Corporate Governance: Corporate Governance is important for capital markets development. IFC has partnered with TKYD (Corporate Governance Association of Turkey) and provides training and knowledge in topics such as the methodology for corporate governance due diligence, publishing a business governance handbook in Turkish, and helping organize the "Anatolia Seminars" to raise awareness of corporate governance with family businesses, private universities, and local media.
Details of projects currently in progress can be found in IFC Disclosure.
For completed projects see press releases by visiting the IFC Press Room.