Turkey: A loan to QNB FINANSBANK to support low-carbon agricultural projects

QNB Finansbank is a universal bank set up in 1987 and is listed on the Istanbul Stock Exchange. It is 99.88% owned by Qatar National Bank (QNB), the largest banking group in the Middle East and Africa. It is today the 8th largest bank in Turkey and the 5th among private banks in terms of the size of the balance sheet and project portfolio. QNB Finansbank is a longstanding partner of Proparco, as it is the 3rd operation with this counterparty.

The project involves a EUR 25m loan to finance the bank’s loan portfolio in the agriculture sector, part of which will be earmarked for projects for energy efficiency and the efficient use of resources. QNB Finansbank has been operating in the agriculture sector for several years and is today the 2nd largest private bank to finance agriculture, with 3% of the market share.

This credit line is earmarked for a key sector for the country where there are major climate challenges. Despite its importance for the country’s economy, agriculture still remains underserved by banks (especially private banks). This financing also aims to promote low-carbon development, thanks to its component dedicated to the efficient use of energy and resources. This project should allow QNB Finansbank to extend its range of loans to some 3,000 additional Turkish agricultural enterprises, employing 74,000 people. It will also contribute to increasing the bank’s market share in the agriculture sector.