IFC provides green loan to Sanko Holding

LONDON

The International Finance Cooperation (IFC), a member of the World Bank Group, is providing up to $150 million to a leading local industrial group, Sanko Holding, to help create jobs in Türkiye’s earthquake-affected provinces, boost sustainable growth and enhance competitiveness.

Sanko operates predominantly in the province of Gaziantep, the region most impacted by the February earthquakes, IFC said in a statement, noting that it is also the area’s largest employer, with around 15,000 employees.

IFC’s investment will provide crucial — and currently scarce — long-term financing to help Sanko improve its sustainability, competitiveness and energy efficiency, including constructing new green-building-certified manufacturing facilities and rebuilding damaged infrastructure, according to the statement.

IFC’s financing comprises $115 million from IFC’s own account and $35 million in mobilization from Finance in Motion, a global impact asset manager focused on addressing climate-linked challenges in emerging markets.

The funding combines green loan and earthquake response financing.

The IFC financing is expected to create around 1,400 direct and 4,000 indirect jobs.

It is part of a coordinated World Bank Group effort to overcome the impact of the earthquakes, with IFC aiming to deploy about $1 billion over two years to support relief and reconstruction efforts.

IFC has supported private sector development in Türkiye for more than 50 years, with investments of nearly $11 billion in the last decade alone, the statement noted.

Türkiye represents IFC's third-largest country exposure globally, with a committed portfolio of close to $4.9 billion as of November 2023.