EBRD and Garanti BBVA support women- and youth-led firms

• EBRD investing €100 million in Garanti BBVA’s diversified payment rights programme
• Financing will support women-led SMEs and young entrepreneurs
• Project being supported by Turkish Treasury

The European Bank for Reconstruction and Development (EBRD) is investing €100 million in senior rated notes issued under Garanti BBVA’s existing diversified payment rights (DPR) programme.

This financing will provide Garanti BBVA with long-term funding to expand access to finance for women- and youth-led businesses in Türkiye. DPR financing is backed by current and future foreign-currency payment orders generated through the bank’s payment business, supporting longer-term funding and helping to diversify Garanti BBVA’s wholesale funding base.

Half of the EBRD’s investment, €50 million, will be provided under the Türkiye Women in Business II (TurWiB II) programme for on-lending to women-owned or -led small and medium-sized enterprises (SMEs).

Under TurWiB II, Garanti BBVA will seek to broaden access to finance for women entrepreneurs, including businesses outside Ankara, Istanbul and Izmir and first-time borrowers.

The programme will also provide targeted non-financial services to eligible women-led businesses, including advisory support, training, mentoring, networking and knowledge products, with a potential focus on growth-stage and technology-oriented companies.

The remaining €50 million will be provided under the Türkiye Youth in Business (TurYiB) programme, supporting micro, small and medium-sized enterprises that are managed or majority-owned by people under the age of 35.

The EBRD financing will be accompanied by first-loss risk cover provided by the Türkiye Credit Guarantee Fund and underwritten by the Turkish Treasury.

Francis Malige, the EBRD’s Managing Director for Financial Institutions, welcomed the partnership, saying: “Women and young entrepreneurs are central to Türkiye’s long-term competitiveness, yet many continue to face barriers in accessing finance and know-how. By combining long-term funding with targeted advisory support and credit enhancement, this investment will help Garanti BBVA to reach more businesses, including first-time borrowers and entrepreneurs in Türkiye.”

Mahmut Akten, the CEO of Garanti BBVA, said: “We are pleased to strengthen our longstanding partnership with the EBRD through this financing. Diversifying our funding sources enables us to support businesses with long-term financing, while the dedicated funding for women and young entrepreneurs will help broaden access to finance and foster more inclusive growth in Türkiye.”

Garanti BBVA is one of the EBRD’s longest-standing partner banks in Türkiye. This is the bank’s first transaction under TurWiB II, building on its participation in the first phase of the EBRD’s Women in Business programme. It is also the bank’s first transaction under the TurYiB programme.

The EBRD is a key institutional investor in Türkiye, having committed more than €26 billion in the country since 2009, largely in the private sector.