EBRD Commits $100 Million to İşbank for Earthquake Recovery and Women-Led SMEs in Türkiye

EBRD Commits $100 Million to İşbank for Earthquake Recovery and Women-Led SMEs in Türkiye

(IN BRIEF) The European Bank for Reconstruction and Development (EBRD) is extending $100 million in financing to Türkiye İş Bankası (İşbank), Türkiye’s largest private bank, to support earthquake recovery efforts in the south-eastern region of Türkiye and empower women-led small and medium enterprises (SMEs). This funding, structured as an investment in İşbank’s rated bonds, will play a crucial role in aiding the region’s reconstruction following devastating earthquakes and promoting women’s entrepreneurship, contributing to a resilient and inclusive future for the Turkish economy.

(PRESS RELEASE) LONDON, 7-NOV-2023— /EuropaWire/ — The European Bank for Reconstruction and Development (EBRD) is providing US$ 100 million (around €90.8 million) in financing to Türkiye İş Bankası (İşbank), the largest private bank in Türkiye, for earthquake support and support for women-led small and medium enterprises (SMEs).

The facility will consist of an investment in rated bonds issued under İşbank’s existing Diversified Payment Rights (DPR) programme.

Some US$ 80 million (about €72.6 million) of the proceeds will be used to promote recovery and reconstruction efforts in the south-eastern region of Türkiye, which has been hit by a series of devastating earthquakes that caused widespread damage and more than 50,000 fatalities. The facility will expand financing opportunities for companies involved in recovery and reconstruction efforts through essential service, management or supply contracts with relevant organisations, allowing them to expand or adjust their operations accordingly.

The disaster-response financing will fall under the EBRD’s Türkiye Disaster Response Framework, a €600 million response package for partner banks to provide credit lines to businesses and individuals in the affected region. The EBRD previously announced a €1.5 billion, two-year investment plan for the region, intended to lessen the economic impact of the disaster.

Around US$ 20 million (€18.2 million) of the financing is provided under the EBRD’s Women in Business programme to support women-led SMEs in Türkiye, and to strengthen the country’s real economy and women’s participation in it.

EBRD Associate Director, Dariga Haynes said: “Our collaboration with İşbank goes beyond a traditional partnership. We’re investing in rated bonds under İşbank’s established DPR programme – a well-recognised instrument leveraged by Turkish banks for long-term funding. This facility will play a pivotal role in advancing our vital frameworks in Türkiye, especially in disaster response and promoting women’s entrepreneurship. Together, we’re building a resilient and inclusive future for the Turkish economy.”

İşbank Deputy Chief Executive Gamze Yalçın said: “As İşbank, we are happy and proud to witness the continuation of our long-lasting cooperation with EBRD through this project which is another significant symbol of EBRD’s continuous support to the Turkish economy. İşbank will continue to support the earthquake affected region and women-led firms in the Turkish economy with this new facility.”

To date, the EBRD has invested more than €18 billion in the Turkish economy, largely in the private sector.

Media Contact:

Tel: +44 207 338 7805
Email: press@ebrd.com

SOURCE: EBRD