EBRD acquires $59 mn equity stake in Turkiye’s DeFacto

DeFacto will use the investment to strengthen its inclusion credentials and make its human resources policies more disabled-friendly for workers. The company aims to increase the number of workers with disabilities, with a view to reaching 5 per cent across its manufacturing, retail, and office operations, according to the EBRD.

The European Bank for Reconstruction and Development (EBRD) has acquired a minority equity stake worth $59 million in DeFacto. The bank’s investment is expected to boost DeFacto’s growth and extend its footprint in the economies where the bank operates. DeFacto is the first Turkish non-food retail company in which the bank has taken a stake.

The EBRD’s priorities in Turkiye include the internationalisation of Turkish companies and increasing the depth and resilience of the country’s capital markets through equity deals. The investment is anticipated to promote gender equality practices across the company.

“The EBRD remains committed to supporting a resilient, international, and diverse capital market in Turkiye, and we view our partnership with DeFacto as a strong step towards that goal. DeFacto has great potential to become a moving force for the sector and the country, and we are happy to provide resources for the company as it strengthens its inclusivity and gender credentials,” said Hande Islak, EBRD deputy head for Turkiye.

“Our partnership with the EBRD is strong evidence of our long-term global success. In 2022, we increased our sales revenues both domestically and internationally. We entered new markets and increased our number of stores. We had record export numbers and grew our e-trade numbers. With the EBRD’s investment, we will invest in new markets and boost the international share of our revenues to 70 per cent. We will build on the success we achieved in Europe and continue to grow our new-generation franchise and e-trade models,” said DeFacto CEO Ihsan Ates.

Fibre2Fashion News Desk (NB)