Turkey's Development Bank
Assets of the Turkey Development and Investment Bank Reached 141.6 Billion TL. The Turkey Development and Investment Bank increased its assets by 38% compared to the same period of the previous year, reaching 141.6 billion TL in the first three months of the year. The bank elevated its credit volume by 30.7% to 87 billion TL by providing financial support to projects crucial for Turkey’s future.
The Turkey Development and Investment Bank disclosed its financial results for the first three months of 2024 on the Public Disclosure Platform (KAP). During this period, the bank increased its assets by 38% compared to the same period of the previous year, reaching 141.6 billion TL.
While the bank’s net profit increased by 56% to 1.034 million TL, the credit amount reached 87 billion TL, reflecting a 30.7% increase compared to the same period of the previous year. The bank achieved an average equity profitability rate of 44.5% by the end of March 2024. The ratio of gross non-performing loans to total loans remained at 0.99%.
“Continuing Our Activities in Line with Turkey’s Net Zero Emission Goals”
Ibrahim Öztop, the General Manager of the Turkey Development and Investment Bank, shared that they signed a credit agreement worth 200 million US dollars and 200 million euros with the World Bank (IBRD) under the guarantee of the Republic of Turkey Ministry of Treasury and Finance to support carbon emission reduction projects in the industrial sector in Turkey.
Öztop stated, “With this agreement signed with the World Bank, we will support investments in high-carbon emission industries such as metal, chemical, and cement with long-term financing. We provided financing of 100 million dollars from the Islamic Development Bank (IsDB) for food security and agricultural industry and 50 million dollars from the OPEC International Development Fund (OFID) for food security and agricultural industry under the guarantee of the Republic of Turkey Ministry of Treasury and Finance.
The agreement for providing 100 million dollars in trade finance from the International Islamic Trade Finance Corporation (ITFC), a member of the IsDB group, is in the signing phase. We will continue our efforts to directly contribute to Turkey’s 2053 net zero emission goals.”
“Finding Innovative Solutions Within the Scope of Investment Banking Activities”
Öztop emphasized that they continue to work towards providing added value to public institutions and private sector companies operating in different sectors within the scope of merger and acquisition advisory activities.
He said, “Our bank successfully completed the acquisition process of Traçim Çimento San. ve Tic. A.Ş., which we started working as an exclusive financial advisor in 2023, by AC Çimento A.Ş. in March 2024. This transaction, which we realized, was the 21st merger and acquisition transaction completed by our bank in the field of investment banking since 2019. Our bank continued to provide financial advisory services to the Privatization Administration of the Republic of Turkey Ministry of Treasury and Finance for projects related to the privatization of selected power plants and ports.”
Highlighting their innovative products within the scope of investment banking activities, Öztop said, “Under the scope of public offerings, our bank led the 3.8 billion TL public offering of Oba Makarna. Our bank facilitated the issuance of the first-of-its-kind 30 million TL wheat price-indexed sukuk of the digital agriculture platform Tarfin Tarım, which brings together the agriculture ecosystem with technology, in Turkey. We also brokered the 70 million TL sukuk issuance of Tarfin Tarım and the 200 million TL sukuk issuance of CarrefourSA, which is an important step for the food security and sustainability of the supply chain in Turkey. Moreover, our bank successfully continued its investment banking services provided to private and public institutions in this period, as in every period.”
“Playing an Important Role in the Entrepreneurship Ecosystem with the Turkey Development Fund”
Öztop emphasized their goal to support and grow the entrepreneurship ecosystem in Turkey through the Turkey Development Fund, founded by the Turkey Development and Investment Bank.
He said, “Through the Turkey Development Fund, founded by our bank, direct investments were made to 133 companies that received the excellence stamp from TÜBİTAK through the sub-fund TÜBİTAK BİGG Fund. Through our other fund under the Turkey Development Fund umbrella, Invest 101, direct investments were made to FenixPyre (formerly Datanchor) in the cybersecurity field and İdenfit in the human resources technologies field.
Besides the investments of TÜBİTAK BİGG Fund, the number of companies in the direct investment portfolio of the Turkey Development Fund has reached 22. With its diversified sub-funds that can support companies at all stages from seed stage to maturity, the Turkey Development Fund will continue to play a leading role in the development of the entrepreneurship ecosystem through its recent investments.”