The European Bank for Reconstruction and Development (EBRD) has purchased a minority equity stake in Istanbul-based global apparel retailer DeFacto for $59 million (TL 1.12 billion).
The bank’s investment will help DeFacto fuel growth and expand its footprint in the economies where the lender operates, it said in a statement Friday.
DeFacto is the first Turkish nonfood retail company in which the EBRD has taken a stake.
DeFacto will use the investment to strengthen its inclusion credentials and transform its human resources policies to better respond to the recruiting and training needs of workers with disabilities. The company will target an increase in the share of workers with disabilities to reach 5% across its manufacturing, retail, and office operations. The investment will also promote gender equality practices across the company.
The EBRD’s priorities in Turkiye include the internationalization of Turkish companies and increasing the depth and resilience of the country’s capital markets through equity deals.
Hande Işlak, EBRD Deputy Head for Turkiye, welcomed the deal, saying: “The EBRD remains committed to supporting a resilient, international and diverse capital market in Turkiye, and we view our partnership with DeFacto as a vital step toward that goal. DeFacto has great potential to become a moving force for the sector and the country. We are happy to provide resources for the company as it strengthens its inclusivity and gender credentials.”
DeFacto CEO Ihsan Ateş also said that the partnership with the EBRD is strong evidence of their 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,” he said.
Ateş noted that with the EBRD’s investment, they would invest in new markets and boost the international share of DeFacto revenues to 70%.
“We will build on the success we achieved in Europe and continue to grow our new-generation franchise and e-trade models,” he said.
DeFacto is a global apparel retailer with a product offering of affordable clothing in a broad range of categories. The company has a strong international presence with operations in over 90 countries. DeFacto’s countries of operation are mainly similar to those in which the bank operates, including Morocco, Kazakhstan and Egypt.
The EBRD is a leading institutional investor in Turkiye. Since 2009, it has invested almost 17 billion euros ($18.42 billion) in various sectors of the country’s economy, mainly in the private sector.