Türkiye stands out as the third-largest country in the global portfolio of International Finance Corporation (IFC), an arm of World Bank Group, a senior executive said on Sunday, detailing the institution's priorities in the country.
International Finance Corporation's Türkiye, Kazakhstan and Uzbekistan Director Lisa Kaestner said they are focusing on investments that can boost employment and raise productivity during a period of tightening liquidity conditions and rising volatility.
"IFC has invested more than $25 billion in Türkiye over the past 10 years. Türkiye stands out as the third-largest country in IFC’s global portfolio," Kaestner told Anadolu Agency (AA).
Speaking to AA, she noted the country is strategically important for the World Bank Group, explaining that IFC’s priorities are shaped around a very concrete question: how private sector investments can support employment and competitiveness while also strengthening resilience.
Kaestner emphasized that, amid tighter liquidity and increased volatility, they are prioritizing investments that can create jobs, improve productivity, and accelerate the transition toward cleaner and more resilient value chains.
"Through our investments in manufacturing, logistics and value chains across the real sector, we support the competitiveness and growth of Turkish companies," she explained.
"We help companies improve productivity, meet international standards, strengthen export capacity and shift toward higher value-added production that creates employment," she added.
Moreover, Kaestner said IFC invested in Arçelik to support R&D, renewable energy and resource efficiency, and also financed Enerjisa to strengthen and modernize energy distribution infrastructure, including in regions affected by the earthquakes back in 2023.
In the financial sector, Kaestner said IFC works with private banks and non-bank financial institutions to provide longer-term financing to small and medium-sized enterprises (SMEs), exporters and entrepreneurs.
"At the same time, we contribute to the development of capital market instruments that broaden the investor base. For example, IFC invested $100 million in Iş Bank’s digital bond, the first digital bond issued by a private bank in an emerging market," she noted.
"The funds were directed toward supporting SMEs recovering in the earthquake-hit region," she furthered.
Kaestner also underscored that IFC's investment priorities in Türkiye align directly with the World Bank Group’s employment-focused agenda, noting that micro, small and medium-sized enterprises (MSME) account for around 70.5% of employment in the country.
She said employment is largely an MSME story, but large-scale companies also make significant contributions.
"When leading employers grow, the employment impact extends beyond the company itself (as) suppliers, logistics firms and service providers also benefit from that growth. IFC's role is to enable companies to invest, grow and create jobs at every stage."
In practice, she explained, this means focusing not only on financing volumes but also on factors such as maturity, risk appetite and accessibility to financing, all of which determine whether job-creating investments can materialize.
These factors are especially critical in industrial modernization, clean energy, and large-scale logistics and infrastructure investments, where payback periods are longer.
Kaestner said that when companies gain access to longer-term and properly structured financing, they can invest in new equipment, skills and systems, compete more effectively, and sustain employment even during difficult conditions.
Kaestner said one of IFC’s key contributions in Türkiye is mobilizing private capital. She explained that IFC often acts as an anchor investor, helping build confidence in transactions and bringing together international creditors and investors through proper structuring and risk mitigation mechanisms.
This approach, she said, can include creating large-scale financing packages with commercial banks, supporting bond issuances and utilizing capital market instruments that broaden the investor base.
As an example, Kaestner noted that IFC mobilized private capital, with participation from commercial banks and asset managers, for a Eurobond issuance aimed at expanding Şişecam’s flat glass and solar glass production capacity, while also serving as an anchor investor in the issuance.
Kaestner emphasized that, for IFC, resilience means ensuring that investments continue and essential services operate uninterrupted even in volatile conditions.
"During periods when liquidity tightens and risk appetite declines, IFC steps in to support companies with strong fundamentals and priority investments through long-term, properly structured financing and risk-sharing," she said.
"In addition to financing, our advisory and pre-investment work contributes to building a pipeline of bankable projects while supporting higher standards in environmental and social governance, corporate governance and inclusivity. In this way, we help ensure that private capital serves more resilient and sustainable growth."
