IFC Backs DenizBank’s $270M Green Bond to Boost Türkiye’s Net Zero Transition

The International Finance Corporation (IFC) has announced a $100 million anchor investment in a landmark $270 million green bond issuance by DenizBank Anonim Şirketi (DenizBank). The move marks a significant milestone in Türkiye’s efforts to accelerate sustainable finance, strengthen climate resilience, and generate new jobs across key economic sectors.

A Boost for Green and Climate-Resilient Investments

The five-year green bond will enable DenizBank, a longstanding IFC partner, to significantly expand its portfolio of sustainable projects. Funding will be directed toward:

• Renewable energy development, including solar, wind, and hydroelectric projects.

• Energy efficiency upgrades across industries, businesses, and households.

• Circular economy initiatives, with a focus on recycling and resource recovery.

• Waste management and sustainable infrastructure projects.

• Carbon reduction and climate adaptation measures to build resilience against extreme weather.

By financing these initiatives, DenizBank aims not only to help businesses cut emissions and improve efficiency but also to diversify its portfolio away from traditional, carbon-intensive sectors such as heavy industry and fossil fuels.

Addressing Environmental and Economic Challenges

Türkiye faces mounting risks from extreme weather events, food insecurity, water scarcity, and biodiversity loss. These challenges have direct consequences for the economy, from agricultural production to urban resilience.

“Through this green bond issuance, we are channeling resources into the investments Türkiye needs to transition to a low-carbon economy,” said Bora Böcügöz, DenizBank’s Executive Vice President for Treasury, Financial Institutions and Investment Group. “Our aim is to provide long-term financing for projects that not only mitigate climate change risks but also secure a more resilient future for businesses and communities.”

IFC’s Role in Sustainable Finance

The IFC, a member of the World Bank Group (WBG), has emphasized that its investment is about more than financing — it is about transforming economic pathways.

“Our investment in DenizBank's green bond marks a significant milestone in advancing sustainable finance in Türkiye,” said Wiebke Schloemer, IFC Director for Türkiye and Central Asia. “This initiative not only strengthens climate resilience but also drives inclusive growth by creating new employment opportunities. We remain committed to supporting the country’s transition to a low-carbon economy where sustainability and job creation go hand in hand.”

Türkiye’s Net Zero Target and Investment Needs

Türkiye has pledged to reach net zero emissions by 2053, aligning its climate agenda with global commitments under the Paris Agreement. According to WBG’s Country Climate and Development Report (CCDR), the transition will require an estimated $165 billion in investment between 2022 and 2040 to decarbonize the economy, scale up renewables, and bolster adaptation efforts.

The IFC-DenizBank partnership contributes directly to these ambitions by mobilizing private capital into sectors that are critical for achieving long-term climate goals.

Alignment with Global and National Strategies

The investment aligns closely with the WBG Country Partnership Framework for Türkiye (2024–2028), which prioritizes:

• Greening the economy,

• Expanding inclusive services, and

• Strengthening sustainability across sectors.

It also supports the IFC’s broader global mandate to expand sustainable finance in emerging markets, ensuring that environmental and economic goals advance simultaneously.

IFC’s Growing Presence in Türkiye

Türkiye is currently IFC’s third-largest country exposure globally, with a committed portfolio of around $5.8 billion as of September 2025. This investment in DenizBank’s green bond underscores IFC’s deepening role in mobilizing climate finance in Türkiye, particularly in partnership with private sector banks that are well positioned to channel resources toward small and medium-sized enterprises (SMEs) and local infrastructure projects.

Looking Ahead

The DenizBank green bond issuance, backed by IFC’s $100 million investment, represents a pivotal step in mobilizing sustainable capital markets in Türkiye. By directing funds into renewable energy, circular economy projects, and energy efficiency, the initiative promises not only to cut emissions but also to create jobs, strengthen resilience, and position Türkiye as a regional leader in green finance.

As the climate crisis intensifies, partnerships between development institutions and private sector banks will be vital in ensuring that investments are scaled quickly, equitably, and sustainably.