EBRD’s first investment in Turkish non-food retail sector: $59 million in DeFacto

EBRD’s first investment in Turkish non-food retail sector: $59 million in DeFacto

(PRESS RELEASE) LONDON, 20-Jan-2023 — /EuropaWire/ — The European Bank for Reconstruction and Development (EBRD), a multilateral developmental investment bank, has made a significant move in the Turkish retail market, purchasing a minority equity stake in DeFacto, a global clothing retailer based in Turkey, for $59 million. This marks the first time the EBRD has invested in a Turkish non-food retail company, signaling a shift in the bank’s priorities towards deepening capital markets in Turkey through equity deals.

DeFacto plans to use the investment to fuel growth and expand its footprint in the economies where the EBRD operates. The company will also strengthen its inclusion and diversity policies, targeting an increase in the share of workers with disabilities and promoting gender equality practices across the company.

Hande Işlak, EBRD Deputy Head for Türkiye, welcomed the deal, saying: “The EBRD remains committed to supporting a resilient, international and diverse capital market in Türkiye, and we view our partnership with DeFacto as a strong step towards that goal. DeFacto has great potential to become a moving force for the sector and the country, and we are happy to provide resources for the company as it strengthens its inclusivity and gender credentials.”

DeFacto CEO Ihsan Ates said: “Our partnership with the EBRD is strong evidence of our long-term global success. In 2022, we increased our sales revenues both domestically and internationally. We entered new markets and increased our number of stores. We had record export numbers and grew our e-trade numbers. With the EBRD’s investment, we will invest in new markets and boost the international share of our revenues to 70 per cent. We will build on the success we achieved in Europe and continue to grow our new-generation franchise and e-trade models.”

DeFacto is a global apparel retailer with a product offering of affordable clothing in a broad range of categories. The company has a strong international presence with operations in more than 90 countries. DeFacto’s countries of operation are largely similar to those in which the Bank operates, including Morocco, Kazakhstan and Egypt.

The EBRD is a leading institutional investor in Turkey, having invested almost €17 billion in various sectors of the country’s economy since 2009, mostly in the private sector.

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SOURCE: EBRD