The Asian Infrastructure Investment Bank (AIIB) will provide USD300 million in sovereign-backed financing to VakıfBank, supporting Türkiye’s post-earthquake reconstruction while accelerating climate-aligned financing for small and medium-sized enterprises (SMEs).
The facility is designed to address two of Türkiye’s most pressing priorities following the 2023 earthquakes: resilient reconstruction and long-term climate transition. A substantial share of the financing will support the reconstruction of affordable housing and essential social infrastructure – including schools and healthcare facilities – in earthquake-affected regions, helping restore safe living conditions and critical public services for communities most impacted by the disaster. The remaining allocation will expand access to climate-focused financing for SMEs, enabling investments in renewable energy, energy efficiency, clean technologies and climate-resilient business practices.
“This facility demonstrates AIIB’s commitment to supporting Türkiye at a critical moment of recovery, while keeping climate action firmly at the center of our engagement,” said Gregory Liu, Director General of Financial Institutions and Funds Clients Department, Global, AIIB. “By partnering with VakıfBank, we are helping accelerate reconstruction efforts and enabling SMEs to contribute meaningfully to Türkiye’s climate transition.”
Leveraging VakıfBank’s nationwide network and experience in development-oriented financing, the facility is expected to deliver tangible social and economic benefits, from safer housing and restored social infrastructure to stronger and more resilient businesses across the country.
“By combining financing for affordable housing and essential social infrastructure with targeted climate-aligned support for SMEs, this partnership with AIIB will help restore critical services, strengthen livelihoods and accelerate the adoption of green and resilient technologies across Türkiye,” said Abdi Serdar Üstünsalih, CEO of VakıfBank. “As Türkiye’s leading deposit bank in cooperation with international financial institutions, this first financing partnership with AIIB represents a significant milestone for VakıfBank. While continuing to support the recovery of earthquake-affected regions, we are also advancing the green transformation of our SMEs, one of the most critical pillars of the real economy. Through this facility, we are reinforcing Türkiye’s climate transition and supporting its net-zero emissions target by 2053 by strengthening private-sector-led climate action.”
The project is aligned with AIIB’s thematic priorities on green infrastructure and private capital mobilization. It also contributes to Türkiye’s commitments under the Paris Agreement while supporting the Sustainable Development Goals, including Goal 11 (Sustainable cities and communities), Goal 13 (Climate action) and Goal 8 (Decent work and economic growth).
About AIIB
The Asian Infrastructure Investment Bank is a multilateral development bank dedicated to financing “Infrastructure for Tomorrow,” with sustainability at its core. AIIB began operations in 2016, now has 111 approved members worldwide, is capitalized at USD100 billion, and is AAA-rated by major international credit rating agencies. AIIB collaborates with partners to mobilize capital and invest in infrastructure and other productive sectors that foster sustainable economic development and enhance regional connectivity.
About VakıfBank
VakıfBank, established in 1954, is majority-owned by the Türkiye Wealth Fund (73.26%), with the Republic of Türkiye Ministry of Treasury and Finance holding 14.75%. It is Türkiye’s second-largest bank, with total assets of approximately USD120 billion since 2020. VakıfBank offers full-service commercial and retail banking through over 950 branches nationwide and maintains an international presence with branches in New York, Bahrain, Erbil, Qatar, representative offices in London and Dubai, and a subsidiary in Austria, VakıfBank International AG.
