The Islamic Development Bank signed a 660 million euro financing agreement with Turkiye on Wednesday for the Istanbul North Rail Crossing Project. Worth approximately $728 million, the deal is the bank’s largest sovereign financing transaction in the country.
The agreement was finalised on November 12 during COP31 in Antalya. Multilateral development banks announced financing for 10 projects and programmes in Turkiye worth approximately $5.1 billion during the event.
The transaction represents the first Forward Lease agreement between the bank and Turkiye. The bank’s Board of Executive Directors approved the financing in June 2026.
Turkiye has set a target of achieving net-zero emissions by 2053. Investment in sustainable transport, renewable energy and industrial decarbonisation forms part of this broader transition strategy.
The rail project, known as INRAIL, will use nearly 127 kilometres of electrified and fully signalized railway infrastructure. The Islamic Development Bank stated that INRAIL will help strengthen intercontinental rail connectivity by enabling more efficient freight and passenger movement between Europe and Asia.
The transport initiative is one of Turkiye’s flagship projects. It aims to improve the movement of goods and passengers along major regional trade routes while advancing sustainable transport and climate goals.
During the event, the bank announced its participation in supporting the development of the Sivas and Taşeli solar energy projects in Turkiye. The institution described the move as a step towards advancing clean energy initiatives.
The bank is working closely with relevant those involved to facilitate the implementation of the Sivas and Taşeli projects. The work focuses on encouraging private-sector participation in their financing and operation, according to the Saudi Press Agency.
The two solar projects are being developed by Saudi-listed Acwa. Each will have a planned capacity of 1,000 megawatts, giving them a combined capacity of two gigawatts.
Eight international development and commercial lenders, including the Islamic Development Bank, signed a Letter of Support for financing the solar projects, according to Acwa.
In a separate press statement, the bank reported that it had joined the Turkiye Industrial Decarbonization Investment Platform as a strategic partner. The platform aims to accelerate the industrial sector’s transition to low-emission production while enhancing its competitiveness by preparing investment projects and mobilising financing from domestic and international sources.
The first phase of the platform focuses on four specific sectors. These are iron and steel, aluminium, cement and clinker, and fertilisers.
