EBRD provides €175 million financing package to DenizBank in Türkiye

• EBRD provides financing package to DenizBank
• €175 million in financing to support women and youth in business, and green investments
• Youth in Business programme supported by the European Union and Turkish treasury

The European Bank for Reconstruction and Development (EBRD) is providing a comprehensive financing package of up to €175 million to DenizBank, one of Türkiye’s leading private-sector banks, to expand access to finance for women-led and youth-led businesses and accelerate green investment across the country.

The package comprises three loans. Up to €50 million will be provided under the EBRD’s Türkiye Women in Business II programme, while a further loan of up to €50 million will be extended under the Türkiye Youth in Business programme. A third facility of up to €75 million will be provided under the Türkiye Green Economy Financing Facility III (GEFF III).

The Women in Business and Youth in Business facilities will enable DenizBank to provide longer-term financing to micro, small and medium-sized enterprises owned or led by women and young entrepreneurs. Both programmes are supported by the Türkiye Credit Guarantee Fund.

The Youth in Business financing will place particular emphasis on underserved businesses, including those operating in the regions affected by the February 2023 earthquakes. The facility also benefits from first-loss risk cover in favour of the EBRD, provided by the European Union through the European Fund for Sustainable Development Plus (EFSD+) programme.

The GEFF III facility will consist of €70.5 million in EBRD financing and €4.5 million in concessional finance from the Clean Technology Fund. The funds will be used to finance eligible green economy investments by businesses and individuals, supporting Türkiye’s transition towards a more resource-efficient and low-carbon economy.

At least 30 per cent of the GEFF III financing will be earmarked for new loans in earthquake-affected regions, contributing to their long-term green recovery and reconstruction. The facility will also promote more equal access to green finance for women and men.

Elisabetta Falcetti, EBRD Managing Director for Türkiye and Caucasus, said: “This package brings together three of our core programmes in Türkiye – Women in Business, Youth in Business and the Green Economy Financing Facility – in a single transaction with DenizBank. It reflects the breadth of our partnership and allows us to support inclusion and the green transition together, combining EBRD financing with support from the European Union, the Turkish Treasury and the Clean Technology Fund. We look forward to seeing this financing reach women and young entrepreneurs, as well as green investments across the country, including in the regions affected by the 2023 earthquakes.”

DenizBank Chief Executive Officer Recep Baştuğ said: “Expanding access to finance and accelerating the green transition of the real economy are essential to Türkiye’s sustainable growth. Guided by this approach, we prioritise empowering women and young entrepreneurs, supporting small and medium-sized enterprises and financing the transition to a low-carbon economy. Our 17-year partnership with the EBRD reflects this commitment. As the EBRD’s first banking partner in Türkiye, we have mobilised approximately US$ 1.1 billion across a wide range of sectors. With this new €175 million financing package, we aim to further expand financial opportunities for women- and youth-led businesses while supporting green investments across the economy.”

DenizBank is a full-service banking group with 574 domestic branches, employing nearly 12,000 people in Türkiye. It has been wholly owned by Emirates NBD since 2019.

The EBRD is a key institutional investor in Türkiye, having committed more than €26.6 billion in the country since 2009, largely in the private sector.