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American investment bank JPMorgan has extended a $250 million loan to Türkiye's state-run VakifBank under a guarantee from the World Bank Group's Multilateral Investment Guarantee Agency (MIGA), the bank disclosed on Monday.
The facility aims to support imports of scrap iron and steel used in export production, alongside foreign trade transactions related to renewable energy projects aimed at improving energy efficiency.
Backed by a 95% MIGA guarantee, the financing carries a maturity of up to three years with an option to renew. It is the first transaction completed by a Turkish commercial bank under MIGA's Trade Finance Guarantee Program.
The agreement comes months after VakifBank secured €1.5 billion ($1.7 billion) in 10-year financing under a guarantee from the International Bank for Reconstruction and Development (IBRD), another institution within the World Bank Group.
VakifBank General Manager Osman Arslan said the latest funding reflects the bank's strategy of broadening international financing partnerships while directing resources toward sectors that contribute to Türkiye's long-term economic growth.
"Our international funding strategy focuses not only on securing new resources but also on building strong partnerships while developing solutions for companies operating in value-added sectors," Arslan said.
He noted that VakifBank, one of the World Bank Group's largest partners in Türkiye, is pleased to deepen its cooperation with MIGA. Arslan added that the bank will continue to take part in projects designed to support the country's sustainable growth under its development-focused banking strategy.
MIGA Vice President Tsutomu Yamamoto pointed out that Türkiye ranks among the world's top 10 steel producers and manufactures much of its output through electric arc furnaces, which consume less energy than conventional steelmaking methods.
He noted that financing imports of recyclable steel scrap, together with wind turbines and related equipment, supports Türkiye's sustainable development goals while helping create and preserve jobs in key industries as the country works to expand its renewable energy capacity.
JPMorgan Türkiye Country Head Mustafa Bagriacik said the bank is pleased to serve as the sole lender in the transaction under MIGA's Trade Finance Guarantee Program.
The partnership with MIGA and VakifBank strengthens international trade financing while reinforcing JPMorgan's commitment to supporting clients in Türkiye and drawing on its global network and financing capabilities, he said.
Laura Galvin, JPMorgan's Global Head of Export and Agency Finance, called the deal a milestone for financing export and renewable energy-focused sectors. She added that the bank looks forward to expanding its cooperation with World Bank Group institutions in support of VakifBank's development-focused banking strategy.
VakifBank, Türkiye's second-largest state-owned lender after Ziraat Bank with more than $100 billion in total assets, secured $5.8 billion in new international funding during the first five months of the year, according to the bank.
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