A loan agreement for EUR 80 million has been signed between the Industrial Development Bank of Türkiye (Türkiye Sinai Kalkinma Bankasi / TSKB) and the Alarko Agriculture Group for an 850-decare geothermal greenhouse development in Eskisehir in Türkiye. The International Bank for Reconstruction and Development (IBRD), a World Bank organization, is the lender for this transaction.

The project will be developed under Nata Agriculture, a subsidiary of the Alarko Agriculture Group. The 12-year loan has a grace period of 2 years.

The financing deal is notable for two reasons – it represents the first project finance initiative in agriculture in Türkiye, and is the largest modern greenhouse investment in Türkiye. The project is also expected to provide direct employment opportunities to over 800 people, 75% of whom will be women.

As pointed out by CEO Ümit N. Yildiz, the Alarko Agriculture Group is currently one of the largest modern greenhouse operators in Türkiye, with large-scale investments in Afyonkarahisar, Denizli, and Eskisehir. The group’s geothermal-heated greenhouse in Afyonkarahisar covers 180 decares and is already considered one of the largest of its kind in Europe.

TSKB CEO Murat Bilgiç added that the agreement is part of the bank’s ecosystem-restoring approach, which provides support for focus areas that create benefits and value for a sustainable future.

“We believe that sustainable agricultural practices bearing environmental, human and economic sensitivities will make a significant and multidimensional difference ranging from the protection of ecosystem balance to the efficient use of natural resources and from food security to product quality,” said Bilgiç.

“I hope this valuable deal will be auspicious for Eskisehir and our country alike and will set an example for spreading sustainable agricultural practices throughout Türkiye.”