Istanbul, Türkiye, July 20, 2023—A landmark new investment by IFC is aiming to boost access to finance for Türkiye's small and medium enterprises (SMEs)–with a focus on women-owned smaller businesses and those helping the country adapt to climate change.
IFC is providing $75 million in subordinated debt financing, as part of a $300 million financing package, to Akbank T.A.Ş., a longstanding client, under the bank's Sustainable Finance Framework. This marks IFC's first subordinated debt financing in Türkiye compliant with Basel III requirements and the country's Banking Regulation and Supervision Agency's equity regulations. It is also IFC's first such financing globally with proceeds earmarked for women-owned SMEs. The aim is to contribute to the bank's solid capital base and help expand its lending to SMEs.
"Through our cooperation with IFC, Akbank will further boost Türkiye's economy by giving women entrepreneurs and SMEs focusing on climate investments access to financing via this innovative Tier-2 instrument. With IFC's trust in our credit and sustainability vision, we will navigate the current macroeconomic environment with confidence," said Levent Çelebioğlu, Executive Vice President of Akbank's Corporate and Investment Banking.
The financing is part of IFC's strategy to build a more resilient financial system in Türkiye and boost climate financing. Türkiye is among the top 10 most energy-intensive countries in the OECD and increasing its energy efficiency is vital to ensure sustainable economic growth.
"Smaller businesses are essential drivers of growth in Türkiye, but many struggle to access the funds they need, especially in the current challenging economic climate," said Wiebke Schloemer, IFC Director for Türkiye and Central Asia. "Our investment aims to address this pressing need while helping strengthen a long-standing client's capital base with subordinated debt financing."
IFC and Akbank have been partners since 2000 and previously cooperated in a number of areas, including climate finance, supporting smaller businesses in refugee-impacted regions, and green mortgages.
FC has supported private sector development in Türkiye for over 50 years and invested more than $11 billion in the last 10 years alone. Türkiye represents IFC's third-largest country exposure globally, with a committed portfolio of close to $4.7 billion as of June 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 Akbank
Akbank is one of the leading banks in Turkey with USD 66 billion consolidated assets as of 1Q 2023. Incorporated in 1948, the bank is 49% owned by H.Ö. Sabancı Holding, affiliated Institutions and Individuals, and 51% free float¹. Akbank continues to provide unrivaled financial solutions to its customers leveraging its superior capital buffers, effective asset & liability management, diversified funding base, strong liquidity, best-in-class efficiency, prudent risk management and cutting-edge infrastructure together with its subsidiaries Akbank AG, Ak Asset Management, Ak Investment, Ak Lease, and AkÖde. The bank serves its 11.5 million active consumer base as of the end of 1Q 2023 with a strong and extensive distribution network that utilizes both traditional and digital channels through:
- 12,000+ employees
- 710 branches
- Consumer and Corporate, and Digital Banking
- 5,500+ ATMs
- 750,000+ POS terminals
¹ Shareholder composition calculation is based on the "Ordinary General Assembly Meeting Shareholder List" dated 28.03.2023.
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