EBRD invests in cement company Eurobond in Türkiye

This article is brought to you in association with EBRD.

• EBRD invests in Eurobond issue by Türkiye’s Çimko
• Çimko to use proceeds for green investments and refinancing
• Project in line with EBRD-led low-carbon pathway (LCP) initiative

The European Bank for Reconstruction and Development (EBRD) is investing US$ 50 million in a Eurobond issued by Çimko Cimento ve Beton Sanayi, a joint stock company incorporated in Türkiye.

Çimko will use the proceeds of the US$ 300 million Eurobond issue to finance its decarbonisation investment programme, as well as to refinance. The Eurobond will strengthen Çimko’s balance sheet and have a strong demonstration effect on other Turkish companies seeking to diversify their sources of funding in the capital markets.

Çimko produces and sells cement, clinker, aggregate and ready-mixed concrete, with production facilities in Kahramanmaras, Adıyaman and Bartın. The company is owned by Sanko Holding, a leading Turkish industrial conglomerate mostly active in textiles, energy, cement and packaging. Sanko Holding is also one of the largest employers in Türkiye’s south-eastern earthquake-hit region, employing more than 15,000 people.

The transaction is a key example of the EBRD’s continued commitment to a prior low-carbon pathways initiative, which seeks to decarbonise the country’s steel, aluminium, cement and fertiliser sectors.

Erdem Mehmet Yasar, EBRD Deputy Head of Türkiye, said: “This transaction stands out not only for its advancement of the cement sector’s transition to greener practices, but also for the company’s exemplary approach to securing sustainable funding through capital markets. It is a model of how industrial players can align environmental ambition with smart financial strategy.”

Çimko Chief Executive Officer Önder Kılıç said: “Çimko’s successful Eurobond issuance is strong testament to the international confidence in our company’s solid balance sheet, consistent operational performance and forward-looking strategic vision. Beyond reinforcing our financial structure, the proceeds of this transaction will enable further diversification of our funding sources. With these funds, we aim to accelerate our investments in renewable energy, energy efficiency and decarbonisation and make meaningful progress towards our sustainability goals. This issuance also marks the beginning of our collaboration with the EBRD. We believe this newly established relationship with the EBRD represents the foundation of a long-term strategic partnership, paving the way for many impactful, sustainability-focused projects in the years to come.”

The EBRD is among Türkiye’s key investors, with almost €22 billion committed through 484 projects and trade finance limits since 2009, largely in the private sector.