USD 200 Million in Financing from the Islamic Development Bank Group to Development and Investment Bank of Türkiye
The Islamic Development Bank Group and Development and Investment Bank of Türkiye (TKYB) signed a USD 200 million agreement to support disaster-affected regions and improve the agri-food sector.
In an important development for Türkiye’s post-earthquake recovery efforts, the Islamic Development Bank (IsDB) Group and Development and Investment Bank of Türkiye (TKYB) signed a USD 200 million financing agreement to support the disaster-affected region and strengthen the food sector. The major agreement, part of the IsDB Group’s Food Security Response Program (FSRP), is intended to support the Post-Earthquake Recovery and Agri-Food Support Project in Türkiye (PERAS). PERAS was designed to revitalise agricultural production in Türkiye, particularly in the 17 provinces most severely affected by the February 2023 earthquakes, and includes improving food security, supporting resilient agricultural value chains and promoting sustainable agriculture and food-production systems. In addition to financing from IsDB and the International Islamic Trade Finance Corporation (ITFC), funding from the OPEC Fund will support the project.
The signing ceremony, held at TKYB’s headquarters in Istanbul, was attended by IsDB Group Chairman Dr Muhammad Al Jasser and Deputy Minister of Treasury and Finance of the Republic of Türkiye Osman Çelik. The agreement was signed by Dr Walid Abdelwahab, Director of the IsDB Group Regional Hub Türkiye; TKYB CEO İbrahim Öztop; and TKYB Executive Vice President Özlem Cinemre. At the same time, a guarantee agreement was signed by Dr Walid Abdelwahab and Kerem Dönmez, Director General of Foreign Economic Relations at the Republic of Türkiye Ministry of Treasury and Finance. A trade-finance protocol was also signed at the ceremony by ITFC CEO Hani Salem Sonbol and TKYB CEO İbrahim Öztop.
Commenting on the cooperation, IsDB Group Chairman Dr Muhammad Al Jasser said: “Today marks an important milestone in our already established partnership with Türkiye. This USD 200 million agreement is not only a project, but also a support programme designed to help Türkiye heal its wounds. The initiative is of great importance for rebuilding and revitalising earthquake-affected regions, particularly agricultural production. Together, as we transform these challenges into opportunities for sustainable development and resilience, we are strengthening our solidarity with Türkiye. I am pleased that the OPEC Fund, a strategic partner of IsDB, is joining us in supporting this project.”
Speaking at the signing ceremony, Deputy Minister of Treasury and Finance Osman Çelik said: “IsDB is an important partner within the framework of our development agenda. We are very pleased with our productive cooperation. The Post-Earthquake Recovery and Agri-Food Support Project will serve the earthquake-affected region by supporting the economic recovery of agricultural production.”
ITFC CEO Hani Salem Sonbol said: “We are deeply committed to supporting Türkiye’s recovery efforts following the devastating earthquakes. Our USD 100 million contribution, which aims to finance the pre-import and pre-export needs of Turkish companies in critical sectors including food security, agriculture and earthquake-affected businesses, reflects ITFC’s continuing commitment to promoting sustainable economic growth and food security. This co-financing is a testament to our culture of international cooperation and solidarity in times of need.”
Emphasising the importance of the cooperation, TKYB CEO İbrahim Öztop said: “This comprehensive financing package provided in cooperation with IsDB and ITFC is a milestone in our efforts to overcome the challenges caused by the earthquakes and address the continuing need for food security. We are extremely proud to have entered into this cooperation, which will contribute to our country’s recovery and growth.”
The funds under the agreement will be used strategically to support a range of initiatives under the PERAS project. These include rebuilding critical agricultural infrastructure, improving agri-food processing and distribution capabilities, and implementing innovative agricultural technologies to increase productivity and sustainability. The investment also aims to develop reliable and effective market linkages to ensure the sustainability and growth of agricultural production in Türkiye, thereby contributing to the overall economic recovery of earthquake-affected regions.