Development and Investment Bank of Türkiye’s Total Assets Reach TRY 144 Billion
Development and Investment Bank of Türkiye increased its total assets by 18% year on year to TRY 144 billion in the first six months of the year. Through financing support provided to projects of importance to Türkiye’s green-transition journey, the Bank increased its loan portfolio to TRY 91.8 billion.
Development and Investment Bank of Türkiye disclosed its financial results for the first six months of 2024 on the Public Disclosure Platform (KAP). During the first half of 2024, the Bank increased its total assets by 18% year on year to TRY 144 billion.
The Bank’s net profit increased by 43% year on year to TRY 2.7 billion, while its loan portfolio reached TRY 91.8 billion. The Bank’s average return on equity stood at 41% as of the end of June 2024. The ratio of gross non-performing loans to total loans was 0.83%.
“We Continue Contributing to the National Economy”
Stating that the Bank maintained intensive cooperation with international financial institutions in the second quarter of 2024 to contribute to the national economy, TKYB CEO İbrahim Öztop said: “Our Bank, which continues to take important steps towards achieving Türkiye’s green-transition and net-zero emissions objectives, signed loan agreements with the World Bank (IBRD) for EUR 300 million to support distributed solar energy projects in Türkiye and with the Clean Technology Fund (CTF) for USD 15 million to finance battery energy storage systems. Under the loan agreement signed between our Bank and the World Bank, guaranteed by the Republic of Türkiye Ministry of Treasury and Finance, for USD 200 million and EUR 200 million, we aim to contribute directly to Türkiye’s 2053 net-zero emissions target by supporting carbon-emissions reduction projects in high-emitting sectors in Türkiye. We secured USD 50 million in financing from the OPEC Fund for International Development (OFID), through an on-lending arrangement from the Republic of Türkiye Ministry of Treasury and Finance, for use in food security and agro-industry. Our Bank will continue its efforts to bring new resources into our country in the period ahead.”
“We Invest in Türkiye’s Leading Venture-Capital Funds”
Emphasising the significant value of the recently established Fund of Funds—whose cornerstone investors are the Republic of Türkiye Ministry of Treasury and Finance and Development and Investment Bank of Türkiye—for the entrepreneurship ecosystem, Öztop said: “Through the Fund of Funds, which will be managed by the Türkiye Development Fund and was established with an initial closing size of USD 50 million, with the Republic of Türkiye Ministry of Treasury and Finance contributing USD 35 million and Development and Investment Bank of Türkiye contributing USD 15 million as cornerstone investors, we aim to strengthen Türkiye’s entrepreneurship ecosystem by improving the effectiveness of venture-capital funds and contributing to national development by channeling resources through funds to ventures with high value-added and rapid-growth potential. We believe the fund will contribute to increasing our country’s technological capabilities and create a significant multiplier effect in the entrepreneurship ecosystem by deepening capital markets through the leverage it generates.”
Stating that the Türkiye Development Fund, which comprises eight sub-funds, makes equity investments in innovative ventures and companies with high growth potential, Öztop said: “Through its sub-fund the TÜBİTAK BiGG Fund, the Türkiye Development Fund made direct investments in 136 companies established to implement business plans awarded a Seal of Excellence under the TÜBİTAK 1812 programme. In addition, through the Invest 101 fund, which invests in early-stage ventures, it made direct investments in areas including cybersecurity, human-resources technologies, robotics, artificial intelligence, cloud-computing technologies and liquid-biopsy technology. Excluding TÜBİTAK BiGG Fund investments, we thus increased the number of companies in the Türkiye Development Fund’s direct-investment portfolio to 24 and the amount of direct resources transferred to the overall ecosystem to USD 17.4 million. Through the pioneering role undertaken by the Türkiye Development Fund, we will continue contributing to our country’s entrepreneurship ecosystem.”
“We Are Diversifying Our Investment Banking Activities”
Emphasising that the Bank continued its investment banking work, Öztop said: “In line with its investment banking activities, our Bank acted as lead institution in Oba Makarna’s TRY 3.8 billion initial public offering. It completed Tarfin Tarım’s TRY 30 million wheat-price-indexed sukuk issuance—the first of its kind in Türkiye—for the digital agriculture platform that brings technology together with the agricultural ecosystem, as well as further Tarfin Tarım sukuk issuances totalling TRY 170 million. To help ensure food security and supply-chain sustainability, we also acted as intermediary for CarrefourSA’s sukuk issuances of TRY 300 million and TRY 200 million. Continuing to provide value-added financial advisory services, our Bank successfully completed in March 2024 the acquisition of Traçim Çimento San. ve Tic. A.Ş. by AC Çimento A.Ş., having begun acting as exclusive financial adviser on the transaction in 2023. Within the scope of our mergers and acquisitions advisory activities, our Bank will continue diversifying its work in the coming periods with the aim of adding value to public institutions and private-sector companies operating across different sectors and maintaining its position among the leading mergers and acquisitions advisers.”