Turkey grows to second largest market for EBRD Project Financing in 2012


26 January 2013 – London – The European Bank for Reconstruction and Development (EBRD) has announced that Turkey became the bank’s second largest market for investments in 2012.  Turkey, where the EBRD commenced operations only in 2009, has seen the Bank’s investments grow to reach an annual total of €1.049 billion in 2012, in 28 projects. This makes Turkey the second-largest country of operations for the EBRD in terms of annual business volume.  Russia remained the EBRD’s biggest country of operations with over €2.5 billion invested in 2012.


The total EBRD portfolio in Turkey has exceeded €2.6 billion in 76 projects, the total value of which is €8.2 billion – which means that every euro from the EBRD was supplemented by 2.2 euros from other sources of investment.  Turkey is also the fastest-growing EBRD market, reaching today’s levels of investment up from €150 million in 2009 – the first year of its operations in Turkey. (see chart)

Most of the EBRD investments in Turkey – 96 per cent – have been in the private sector with the remainder in municipal infrastructure projects without sovereign guarantee.

Among the biggest EBRD projects signed in Turkey last year are the Kirikkale closed-cycle gas turbine (EBRD investment over €151 million), Istanbul Ferries privatisation project with IDO and TASS (€115 million), Eurasia tunnel under the Bosporus (€112 million), and two €100-million projects –one to finance construction of the Bares wind farm in Balikesir and the other to support expansion of Turk Telecom’s broadband network in eastern parts of Anatolia . Substantial investments were also made through a number of energy-efficiency credit lines intermediated through Turkish banks to medium-sized enterprises.

“EBRD investment in Turkey has been growing at an increasing pace reflecting the country’s economic dynamism and potential”, said Mike Davey, EBRD Director for Turkey. “There is significant role for the EBRD to play across the full spectrum of Turkey’s economic landscape – from a family-owned company that makes frozen yoghurt to the construction of a new air terminal, the EBRD not only helps growth directly but also demonstrates to other investors the business and financing opportunities Turkey presents.”

In 2013, the EBRD will hold its Annual General Meeting of the Board of Governors in Istanbul on 10-11 May. The event will bring together political leaders, EBRD officials and entrepreneurs from all 34 countries where the Bank is active.

For more information about EBRD projects in Turkey, go tohttp://www.ebrd.com/pages/country/turkey.shtml

The European Bank for Reconstruction and Development (EBRD) was established in 1991 to nurture the private sector in central and eastern Europe and ex-soviet countries. Today the EBRD uses investment to help build market economies and democracies in countries from central Europe to central Asia. The EBRD is the largest single investor in the region and mobilizes significant foreign direct investment beyond its own financing. Owned by 61 countries and two intergovernmental institutions, the EBRD provides project financing for banks, industries and businesses. The EBRD invested €8.7 billion in 388 individual projects in 2012. For more information about the bank, visit http://www.ebrd.com/index.htm

Source: EBRD – Based on EBRD news story by Svitlana Pyrkalo on 23 January 2013