IFC Investment to Boost Farmers’ Access to Finance, Strengthen Agribusiness in Türkiye

Photo Credit: AKSEL KIRCI

​Istanbul, Türkiye, May 23, 2023—A new targeted investment by IFC will help address the critical financing needs of Türkiye's micro, small, and medium enterprises (MSMEs) in the agricultural sector, preserving jobs and aiding economic recovery, with a particular focus on earthquake-impacted areas. 

IFC is investing $125 million, as part of a $610 million equivalent Diversified Payment Rights (DPR) issuance by DenizBank A.Ş., alongside other investors, including the European Bank for Reconstruction and Development and Proparco. The financing is designed to address the funding gap faced by smaller businesses and smallholder farmers, a segment which bears a disproportionately higher burden in accessing credit. Fifteen percent of the funds will be channeled to smaller enterprises in areas affected by the devastating earthquake, which struck Türkiye in February 2023. 

"We find it very valuable to secure long-term and cost-effective funding from abroad" said DenizBank's CEO Hakan Ateş. "While this funding will be extended to the financing of agriculture, in addition, we will continue to increase our efforts, which we initiated to heal the wounds of our citizens and businesses affected by the earthquake, in order to restore the region after the greatest natural disaster in the history of Türkiye, together with this funding." 

IFC's funding will support DenizBank's efforts to further grow its lending to small agricultural enterprises during a challenging economic period. DenizBank, which possesses substantial expertise in farmer-oriented lending, is the second-largest agricultural lender in Türkiye and the largest among privately owned banks. The bank is a long-standing client of IFC and continues to be a partner in addressing the financial needs of small farmers in the country. In 2021, IFC invested $150 million in a similar DPR issuance. 

"With this financing, we are directly aiming to support Turkish agribusiness MSMEs and smallholder farmers, to keep businesses afloat and boost economic growth," said Wiebke Schloemer, IFC Director for Türkiye and Central Asia. "We look forward to further strengthening our collaboration with DenizBank and will continue to seek out new projects to increase access to finance to the underserved segments in the economy." 

Insufficient credit availability continues to hinder economic growth in Türkiye. Smaller enterprises face a substantial financing gap of $62.5 billion – around seven percent of GDP. According to The World Bank 2019 Enterprise Survey for Türkiye, 29 percent of businesses identified access to finance as their major hurdle. 

IFC has supported private sector development in Türkiye for more than 50 years, with investments of nearly $10 billion in the last decade alone. Türkiye represents IFC's third-largest country exposure globally, with a committed portfolio of close to $4.6 billion as of March 2023.

About IFC 

IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2022, IFC committed a record $32.8 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org

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About DenizBank

Aiming to create a "financial supermarket" gathering various financial services under one roof, DenizBank Financial Services Group has 685 branches in total including the branches of subsidiaries and over 14 thousand employees operating in 81 provinces of Türkiye; six domestic and three international financial subsidiaries, six domestic non-financial subsidiaries and a branch in Bahrain. DenizYatırım, Deniz GYO, DenizPortföy Yönetimi, DenizLeasing, DenizFaktoring, FastPay Elektronik Ödeme, Intertech, NEOHUB, DenizKültür, Ekspres İşletme, Açık Deniz Radyo-TV and Bantaş are the domestic subsidiaries of the Group, and Eurodeniz, DenizBank AG and DenizBank Moscow are the international subsidiaries.