RIYADH: The Islamic Development Bank has signed a €660 million ($728 million) financing agreement with Turkiye for the Istanbul North Rail Crossing Project, marking its largest sovereign financing transaction in the country.  
 
The agreement was signed on Nov. 12 during COP31 in Antalya, as multilateral development banks announced financing for 10 projects and programmes in Turkiye worth approximately $5.1 billion. 
 
The IsDB financing is the first “Forward Lease” agreement between the bank and Turkiye, according to a statement. 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, with investment in sustainable transport, renewable energy and industrial decarbonization forming part of its broader transition strategy.  

“INRAIL is expected to help strengthen intercontinental rail connectivity by enabling more efficient freight and passenger movement between Europe and Asia using nearly 127 kilometers of electrified and fully signalized railway infrastructure,” IsDB said in the press statement. 
 
As one of Turkiye’s flagship transport projects, it is expected to improve the movement of goods and passengers along major regional trade routes while advancing the country’s sustainable transport and climate goals. 

Solar projects 

During the event, IsDB announced its participation in supporting the development of the Sivas and Taşeli solar energy projects in Turkiye, describing the move as a strategic step towards advancing clean energy initiatives.  
 
Under the partnership, the bank is working closely with relevant stakeholders to facilitate the implementation of the Sivas and Taşeli projects, with a focus on encouraging private-sector participation in their financing and operation, the Saudi Press Agency reported. 
 
The two projects, being developed by Saudi-listed Acwa, will each have a planned capacity of 1,000 MW, giving them a combined capacity of 2 gigawatts. Eight international development and commercial lenders, including IsDB, signed a Letter of Support for financing the projects, according to Acwa. 

Industrial decarbonisation 

In a separate press statement, IsDB said 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 both domestic and international sources.  
 
In its first phase, the platform focuses on four sectors: iron and steel, aluminium, cement and clinker, and fertilisers.