İşbank obtains USD 360 million of funding

In 2024, İşbank obtained approximately USD 360 million of new funding through a securitization program linked to foreign remittance flows.

Alongside commercial banks, the European Bank for Reconstruction and Development (EBRD) and the German Investment and Development Bank (DEG - Deutsche Investitions- und Entwicklungsgesellschaft) participated as investors in transactions completed in February and May 2024. These transactions, rated “BB+" by Fitch Ratings, consisted of a total of 5 tranches with final maturities of 5 and 6 years.

Out of the EBRD's approximately USD 107 million funding, USD 80 million will be used to support companies in energy efficiency and renewable energy sectors or housing loans meeting energy efficiency standards through the Türkiye Green Economy Financing Facility (GEFF II), while USD 27 million will be allocated to finance SMEs' digital transformation (DTFF).

DEG - Deutsche Investitions- und Entwicklungsgesellschaft, for the first time in a long period, engaged in a transaction with a financial institution in Türkiye, providing a total of USD 80 million with a final maturity of 6 years as part of these transactions. The funds will be allocated to support SMEs, green projects, and women entrepreneurs.

İşbank Deputy CEO Ebru Özşuca underscored the significance of securitization transactions tied to foreign remittance flows as an important component within the spectrum of international funding sources for Turkish banks, and added: “We have been obtaining long-term funding through securitization transactions linked to remittance flows since the year 2000. We remain committed to supporting the Turkish economy through our successful securitization transactions, while also aiding SMEs in their digital transformation, promoting green initiatives and projects in the economy, and empowering women entrepreneurs in sustainability endeavors."