IsDB Signs €660 Million Deal to Finance Major Istanbul Rail Project

The Islamic Development Bank (IsDB) has signed a €660 million ($728 million) financing agreement with Türkiye for the Istanbul North Rail Crossing Project, marking its largest sovereign financing deal in the country.

The agreement was signed on November 12 during the COP31 climate summit in Antalya, where multilateral development banks announced funding commitments for 10 projects and programmes across Türkiye worth approximately $5.1 billion.

The financing is the first agreement between IsDB and Türkiye under a structure known as a “Forward Lease”. The bank’s Board of Executive Directors approved the transaction in June 2026.

The Istanbul North Rail Crossing Project, also known as INRAIL, is expected to strengthen rail links between Europe and Asia by improving the movement of passengers and freight. It will involve nearly 127 kilometres of electrified railway infrastructure equipped with modern signalling systems.

IsDB said the project would support more efficient transport along major intercontinental trade routes while contributing to Türkiye’s wider economic and environmental objectives.

Türkiye has set a target of reaching net-zero emissions by 2053. Expanding sustainable transport, increasing renewable energy production and reducing industrial emissions are among the main elements of its strategy to meet that goal.

Support for major solar projects

During the COP31 event, IsDB also announced its involvement in supporting the development of the Sivas and Taşeli solar power projects, describing the partnership as part of its efforts to expand clean energy investment in Türkiye.

The two projects are being developed by Saudi-listed energy company ACWA Power, with each expected to have a generating capacity of 1,000 megawatts. Together, they will provide 2 gigawatts of planned solar capacity.

According to the Saudi Press Agency, IsDB is working with relevant stakeholders to help advance the projects and encourage private-sector participation in their financing and operation.

Eight international development and commercial lenders, including IsDB, have signed a Letter of Support covering financing for the two solar developments, ACWA Power said.

The projects are expected to contribute to Türkiye’s renewable energy capacity as the country seeks to reduce dependence on fossil fuels and diversify its electricity supply.

Industrial emissions reduction

IsDB has also joined the Türkiye Industrial Decarbonisation Investment Platform as a strategic partner.

The initiative aims to accelerate the shift towards lower-emission industrial production while helping businesses remain competitive. It will identify investment opportunities and mobilise funding from domestic and international sources.

The platform’s first phase will focus on four major industrial sectors: iron and steel, aluminium, cement and clinker, and fertilisers.

These industries are among the most energy-intensive parts of the economy and face significant challenges in reducing emissions.

IsDB’s involvement in the rail, solar and industrial initiatives reflects a broader financing effort to support Türkiye’s transport infrastructure, renewable energy development and transition towards a lower-carbon economy.