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PRESS RELEASENovember 9, 2023

$155 million World Bank Loan to Expand Equity Finance for the Greening of Turkish Firms

WASHINGTON, November 9, 2023—The World Bank Board today approved a $155 million loan for the greening of firms through equity financing and mobilized private capital, and expand climate financing in Türkiye’s capital markets.

The funds will be channeled by the Industrial Development Bank of Türkiye (TSKB) who will use them to partially capitalize a Türkiye Green Fund (TGF). The TGF will provide equity financing to green and greening companies. It will be managed by Maxis Private Equity Portfolio Management A.Ş. (Maxis), one of Türkiye’s largest asset management companies and a Project Implementing Entity under the Project. The project’s total size is expected to reach $405 million by mobilizing private capital in the amount of a combined $250 million at fund level and investee level, in addition to the World Bank loan.

The project aims to simultaneously support (i) firms’ decarbonization and investments in green technologies, (ii) development of the Private Equity industry through a demonstration green fund, (iii) financial sector diversification and development of firms’ access to diversified sources of long-term finance, (iv) lowering high corporate leverage, and (v) accelerate financing for the green transition and enhanced climate action.

According to the Country Climate Development Report of the World Bank published in 2022, Türkiye’s firms need to invest in green technologies to decarbonize, adapt to climate change, contribute to Türkiye’s green transition, enhance their growth potential, and create jobs. The energy sector is the main emitter of CO2 emissions, followed by the manufacturing sector and agriculture. For Türkiye to reach its intended green objectives, firms need to decarbonize. At the same time, decarbonization will be important for firms to maintain their growth potential, especially in the wake of the EU Green Deal. Considering the nature of firms’ investment needs for the green transition, long-term funding will be needed together with knowledge transfer, however financing for green investments is not sufficient and comprises mostly short-term bank lending, with green capital market instruments underdeveloped.

“Equity financing provides long-term risk capital and combines funding with the transfer of expertise, which is also crucial for firms’ greening process. Through TGF, Türkiye can benefit from the accelerating global trend of investors seeking green investment opportunities,” said Humberto Lopez, the World Bank’s Country Director for Türkiye.  

TGF will prioritize investments in innovative green or greening firms, specifically SMEs and mid-caps, in line with a clear Investment Policy Statement (IPS) and Green Investment Framework: The Project will also advance equitable investments by identifying women-inclusive firms with investment potential.

Through this project, the Turkish financial system will attract private capital while the private equity industry will deepen and benefit from the funds’ demonstration Green Investment Framework; TSKB will increase its leading capacity in green finance through this capital market engagement; Firms will get access to long-term finance for their decarbonization and investments in green technologies and for diversifying their funding from debt towards equity; Maxis will deepen its fund management expertise in the area of green investments; and Investors will have access to a new capital market instrument in a more diversified financial system.

The project will ultimately support the transition to a low-carbon and climate-resilient economy, contribute to financial sector diversification and support the development of domestic sources of long-term finance, capital markets, and job creation. Through the proposed structure and the focus on capital markets instruments, the project has significant potential to crowd in private capital and create markets,” said Gunhild Berg and Etkin Özen, the World Bank Project Team Leaders.

Through the project the World Bank is happy to support the Turkish Government’s development priorities as laid out in the Economic Reform Program and the National Development Plan which are consistent with the country’s climate action strategies and action plans.



In Ankara:
Tunya Celasin
In Washington:
Indira Chand
+1 (202) 458-0434


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