IFC Leads $340M Sustainability-Linked Loan to Rebuild Türkiye’s Energy Grid

The International Finance Corporation (IFC), a member of the World Bank Group, has announced a landmark sustainability-linked loan to Enerjisa Enerji A.Ş., one of Türkiye's leading private electricity distribution and retail companies. The financing aims to rebuild and modernize power infrastructure damaged by the devastating February 2023 earthquakes and to support the country's transition toward a low-carbon, resilient energy future.

The loan forms part of a $340 million debt financing package — equivalent in Turkish lira — arranged jointly by IFC, the Asian Infrastructure Investment Bank (AIIB), the Dutch Entrepreneurial Development Bank (FMO), and the Green for Growth Fund (GGF). IFC's contribution includes a six-year local currency loan of $150 million, positioning it as both a financier and the sustainability coordinator for the transaction.

Rebuilding Critical Energy Infrastructure

The catastrophic earthquakes that struck Türkiye in February 2023 caused widespread destruction across 11 provinces, severely damaging public infrastructure, housing, and energy networks. The power grid in affected regions suffered major losses, disrupting electricity access for millions and halting industrial operations.

The new financing will help Enerjisa Enerji restore and upgrade damaged power distribution assets in these earthquake-hit areas, directly supporting reconstruction and recovery efforts. The company will also use part of the funds to modernize grid systems in two of its other operational regions, benefiting more than 22 million residents nationwide.

"Reliable energy infrastructure is the backbone of recovery and growth," said Laura Vecvagare, IFC Regional Head of Infrastructure and Natural Resources. "This financing provides long-term capital needed to rebuild damaged power systems, expand distribution capacity, and support Türkiye's renewable energy ambitions. It is an investment in both resilience and sustainability."

Investing in the Future of Türkiye's Energy Transition

Beyond post-disaster recovery, the project will accelerate Türkiye's green energy transition, aligning with the country's national targets to cut carbon emissions and integrate more renewable energy sources.

A portion of the financing will be allocated to expanding Enerjisa's electric vehicle (EV) charging infrastructure, addressing one of the major barriers to widespread EV adoption in Türkiye — limited access to reliable charging points. The company plans to increase the number of fast-charging stations across its network, reducing transport emissions and supporting cleaner urban mobility.

"Resources we secure from international financial institutions represent far more than financing; they are strategic levers for sustainable growth and energy transition," said Philipp Ulbrich, CFO of Enerjisa Enerji A.Ş. "This agreement demonstrates Enerjisa's financial resilience and transformation-oriented strategy. Through modernizing our power networks and strengthening the EV charging ecosystem, we continue to lead Türkiye's energy transformation and create long-term value."

A Sustainability-Linked Milestone

The IFC served as sustainability coordinator for the financing package, supporting Enerjisa in developing its first-ever sustainability financing framework. This framework integrates key performance indicators (KPIs) tied to both environmental and social outcomes, linking the company's financial commitments to measurable sustainability goals.

Under the agreement, Enerjisa has committed to:

• Increase energy efficiency by reducing technical and non-technical losses in its distribution operations.

• Strengthen gender equality by increasing the representation of women in senior management and leadership roles.

• Implement sustainability reporting and monitoring systems aligned with international best practices, ensuring transparency and accountability throughout the loan period.

Meeting or exceeding these sustainability targets will influence the loan's financial terms, reinforcing Enerjisa's accountability for measurable progress toward social and environmental objectives.

Collaboration for Resilient Growth

The financing structure demonstrates the power of multilateral collaboration in tackling the dual challenge of post-disaster reconstruction and sustainable energy transition.

The AIIB, FMO, and Green for Growth Fund (GGF) joined IFC in extending long-term debt facilities to Enerjisa, collectively mobilizing capital to modernize Türkiye's energy infrastructure while fostering climate resilience.

"This project highlights the strength of international partnerships in advancing sustainable development," IFC noted in its statement. "By working with global financial institutions, we are helping Türkiye rebuild better — with a greener, more efficient, and inclusive energy system."

Supporting the World Bank Group's Resilience Agenda

The investment aligns with the World Bank Group's Country Partnership Framework for Türkiye, which prioritizes climate adaptation, energy transition, and private sector development as key drivers of sustainable growth. It also supports the WBG's broader commitment to the resilient reconstruction of earthquake-affected regions, ensuring that recovery efforts lay the foundation for stronger, more sustainable systems.

Electricity plays a pivotal role in economic recovery and job creation, enabling industries to restart operations and communities to rebuild livelihoods. By channeling capital into grid modernization, the IFC and its partners are not only restoring power but also enabling long-term economic resilience.

Enerjisa: Leading the Way in Sustainable Energy

Enerjisa Enerji, a joint venture between Sabancı Holding and E.ON SE, operates three of Türkiye's largest electricity distribution regions and serves more than 10 million customers. The company has been at the forefront of energy innovation, investing in digitalization, smart grids, renewable integration, and customer-centric solutions.

With this new financing, Enerjisa will advance its digital grid modernization agenda — including the deployment of smart meters, automation systems, and energy-efficient distribution technologies. These initiatives aim to reduce system losses, improve reliability, and prepare Türkiye's power sector for the next generation of renewable and distributed energy systems.

A Step Toward a Greener, More Inclusive Future

The IFC's sustainability-linked loan marks one of the largest private sector energy infrastructure investments in Türkiye since the 2023 earthquakes — and a benchmark for how green finance can support post-crisis reconstruction with long-term social impact.

By combining disaster recovery, gender inclusion, and climate resilience, the partnership between IFC and Enerjisa sets a new standard for integrating sustainability into infrastructure finance.

As Türkiye continues rebuilding and modernizing its energy systems, projects like this underscore the role of public-private cooperation in achieving national development goals while advancing the global transition to clean, inclusive, and resilient energy.