ESG and Green Transformation Investments to Stand Out in 2025

TSKB (Industrial Development Bank of Türkiye) operates under the responsibility of being Türkiye's first privately-owned development and investment bank. The Bank has successfully closed yet another year in investment banking. In 2024, TSKB stood out with its achievements in energy transformation and ESG investments. The Bank made key statements regarding 2025, stating that technology, energy, pharmaceutical industry and industrial manufacturing sectors remained under spotlight in investment banking transactions in Türkiye.

2024 was a year in which TSKB achieved significant success in energy transformation and ESG investments, while the technology, energy, pharmaceutical industry and industrial manufacturing sectors stood out in mergers and acquisitions. In 2025, following the decline in interest rates, the mergers and acquisitions market will be reinvigorated in the second half of the year, while ESG investments is likely to see enhanced activity, with green transformation processes being led in the meantime. TSKB Executive Vice President Poyraz Koğacıoğlu stated that investor interest in public offerings had declined slightly and that TSKB aimed to maintain its leadership in IPOs. He also emphasized that TSKB would continue to contribute to the 2053 Net Zero goal by supporting sustainable investments through the Türkiye Green Finance Project Venture Capital Investment Fund.

TSKB Executive Vice President Poyraz Koğacıoğlu: "Through the transactions we completed in 2024, we have offered brokerage and advisory services for investment banking transactions totaling approximately USD 2.5 billion in the last 5 years."

TSKB Executive Vice President Poyraz Koğacıoğlu stated that, despite the volatility in the economy and all the negative developments in Corporate Finance and Capital Markets, they considered 2024 as a year in which TSKB's Capital Markets operations achieved significant success, generated high levels of commission income and positively differed from the competition. "In 2024, 34 companies went public through IPOs, and over 100 companies continue to prepare for IPOs in 2025. In 2024, the total market capitalization for public offerings reached TL 59 billion 513.1 million. The first half of the year marked a good period in terms of IPOs due to the increase in the risk appetite of domestic investors as well as the market entry of 7.5 million additional individual investors since the beginning of 2020. However, the number of investors and the number of IPOs decreased significantly in the second half of the year. In 2024, TSKB successfully led the initial public offerings of Mogan Energy (TL 3 billion), Odine Technology (TL 1.3 billion), Altınay Defense Technologies (TL 1.9 billion) and Hareket Transportation (TL 1.7 billion). In 2025, if the appetite for IPOs increases, we plan to lead IPOs of significant size." 

 In 2024, the number of public offerings in Türkiye positively diverged from the global trend. Compared to 2023, the number of IPOs fell by a third to 34, while IPO revenues fell by 25% to below TL 60 billion. Unlike the previous year, the number of equity investors decreased to 7 million. The average IPO size was approximately TL 1.7 billion. Based on the data from the Data Analysis Platform, the share of equities held by foreign investors in Borsa Istanbul went down from 38% in 2023 to 37% by the end of 2024."

Stating that in 2025, due to an expected decline in interest rates, investor interest would turn towards capital markets and such interest, particularly in the second half of the year, could lead to public offerings in sizes above the currently projected amounts, Koğacıoğlu said, "We expect that the second half of 2025 will be more positive as the IPO market has slowed down significantly since the end of last year."

Stating that issuances in the TL-denominated Private Sector Debt Instruments Market, which is one of TSKB's main targets, has grown by 7 folds in the last 10 years and approximately 4 folds in the last 5 years, Koğacıoğlu has said, "The issuance of debt instruments by Real Sector Companies has increased gradually in recent years in line with the fund diversification targets of companies. In 2024, the amount of private sector debt securities issued has amounted to TL 631 billion, up from TL 459 billion in 2023. While approximately TL 120 billion of this amount belonged to corporate sector debt instruments, TSKB broke the issuance size record in Turkish capital markets when we completed the transaction regarding the issuance of a bond with a maturity of 2 years, worth TL 4 billion and issued on behalf of Tüpraş, Türkiye's largest industrial corporation. Through the Asset Leasing Company established in 2019, TSKB has realized 25 Sukuk issuances since 2019 by evaluating the potential of interest-free funds. In 2024, the growth trend is expected to continue, particularly with a TL 1 billion Sukuk issuance by MLP Healthcare Services. TSKB will continue to lead the bond and Sukuk issuance market in 2025. All in all, we have provided brokerage and advisory services for a total of approximately USD 2.5 billion worth of transactions in the last 5 years regarding corporate acquisitions, public offerings and private sector debt instruments."

TSKB Executive Vice President Poyraz Koğacıoğlu: "We expect an increase in investment banking transactions focused on technology and digital transformation."

Stating that they expected the energy transformation and ESG investments in 2024 to continue in 2025, Koğacıoğlu said, "In addition, in line with global trends, we expect an increase in investment banking transactions focused on technology and digital transformation. We anticipate that the contraction in the mergers and acquisitions market will gradually decrease, especially with the decline in interest rates as of the second half of 2025."

TSKB Executive Vice President Poyraz Koğacıoğlu: “We intend to make substantial contributions to our country’s 2053 Net Zero goal by actively participating in the green transformation endeavors of various companies.

Stating that, under the Türkiye Green Finance Project VCIF, TSKB established the Türkiye Green Finance Project VCIF by securing a World Bank loan of USD 155 million under the guarantee of the Ministry of Treasury and Finance in a bid to support green transformation processes, Koğacıoğlu said, "Furthermore, we plan to significantly support our country's 2053 Net Zero goal by contributing to the green transformation of various companies. Through the fund established under Maxis Girişim Sermayesi Portföy Yönetimi A.Ş., we plan to invest in multiple companies in 2025."