EBRD loan to Şekerbank boosts agri-financing in Türkiye

The European Bank for Reconstruction and Development (EBRD) is providing a loan of €25 million to Türkiye 's Şekerbank to on-lend to clients implementing green economy investments, most notably sustainable agriculture.

The financing comes under the EBRD's Green Economy Financing Facility II in Türkiye, an allocation of up to €750 million to partner financial institutions for green economy investments in the commercial, public and residential sectors.

With this new loan, Şekerbank will be able to focus its lending on sustainable agriculture and energy efficiency, as well helping farmers in rural areas to use their land more efficiently. In addition, the proceeds will be used by the bank to improve its internal capacity, including climate risk management, expand knowledge and skills and invest in technology.

With an ambitious net zero target of 2050, ensuring food security by reducing the risks that natural hazards pose, including through agriculture-related adaptation measures, is one of Türkiye's significant NDCs. Agriculture remains a driver of the economy, accounting for about 6.5 per cent of GDP and nearly 17 per cent of employment.

Francis Malige, EBRD Managing Director for Financial Institutions, said: "Sustainable agriculture must be addressed not only for a greener future, but also for food security, which remains a challenge on a global scale. We are pleased to be focusing on agriculture in a country such as Türkiye, where the potential for climate-resistant, productive agriculture is encouraging. We are confident that our partnership with Şekerbank in this field will allow us to expand this focus and provide further support to the country's green future."

Aybala Şimşek Galpin, Şekerbank General Manager, said: "With the EBRD's support, we will further strengthen our leading role in financing sustainable agriculture and energy efficiency in the sector. As the only private bank in Türkiye with a founding mission of financing agriculture, we support agricultural activities in an inclusive manner, considering their social and environmental aspects."

The EBRD is among Türkiye's key investors, with more than €20 billion invested through 453 projects and trade finance limits since 2009, most of which was in the private sector.