The EBRD is supporting the continued flow of credit to small and medium-sized enterprises (SME) in Turkey with an investment of 60 million Turkish Lira (€24 million) in notes issued under the Turkey’s first asset-guaranteed bond programme (the “Programme”) established by Sekerbank.
Sekerbank is a growing Turkish bank with a large regional outreach, focusing on micro and SME financing in the developing regions of the country. Sekerbank’s new bond Programme can issue up to TRY 800 million (€324 million) of notes and is secured with a pool of its SME loans.
This is the first asset-guaranteed bond programme to be established in Turkey under the Communique on Asset Guaranteed Securities, which came into effect before the global financial crisis. This transaction represents an innovation in the Turkish capital markets, combining covered bond and securitisation techniques and attracting a mix of private and public investors. The Programme will also have a strong capital markets demonstration effect for other banks looking at broadening their funding base.
The EBRD investment will support Sekerbank’s SME lending operations in economically underdeveloped regions of Turkey. The funds will be used by Sekerbank to finance investments undertaken by local small and medium-sized companies in these lesser developed regions.
Sekerbank’s asset-backed bond Programme is rated A3 (local currency) by Moody’s and arranged by UniCredit Bank AG. The EBRD is investing in the second issuance of notes under the Programme along with the European Investment Bank. This second issuance will bring the total amount issued under Sekerbank’s bond programme to TRY 407.5 million (€165 million). UniCredit, International Finance Corporation and FMO invested in the first Programme issuance in September 2011.
Since the beginning of its operations in Turkey, the EBRD has committed over €1.3 billion in various sectors of the country’s economy, which attracted additional investment in excess of €2.7 billion.