The European Bank for Reconstruction and Development is supporting the expansion of international trade in Turkey with a US$ 50 million trade facility to Şekerbank under the EBRD’s Trade Facilitation Programme (TFP). Şekerbank will become the first issuing bank under the programme in Turkey.
Through the facility the EBRD will issue guarantees in favour of international commercial banks covering political and commercial payment risk of the transactions undertaken by Şekerbank.
Launched in 1999, the TFP aims to promote foreign trade to, from and among the countries where the EBRD invests. Through the programme, the EBRD provides guarantees to international confirming banks and short-term loans to selected banks and factoring companies for on-lending to local exporters, importers and distributors.
The TFP currently includes over 100 partner banks in 23 countries where the EBRD operates with limits exceeding €1.5 billion in total, and more than 800 confirming banks worldwide.
Michael Davey, the EBRD’s Director for Turkey, said: “We are very pleased to welcome Şekerbank as a participant in the EBRD’s trade facilitation programme as the first issuing bank in Turkey. Under the trade finance facility, the EBRD will help Şekerbank to support its local clients which will strengthen Turkey’s international trade flows.”
Established in 1953, Şekerbank is a of Turkey’s most recognised banks with a well-established, nationwide branch network, including in the less-developed South East of the country. The bank focuses on lending to small and medium-sized enterprises and the agriculture sector as well as on retail banking. It is a long standing partner of the EBRD and became a confirming bank under the TFP in 2003.
Zeki Onder, Executive Vice President of Şekerbank, said: “We have been building our relationship with the EBRD over the past years with the different products the EBRD provides to the Turkish market. This new facility will not only strengthen our mutual relationship, but will also help us expand our ability to serve our clients active in international trade finance.”
Recently, Şekerbank became the first Turkish lender to join a new US$ 350 million financing facility launched by the EBRD and the Clean Technology Fund (CTF) to boost investment in energy efficiency improvements in Turkish homes.It received a US$ 60 million credit line, including US$ 12 million from CTF, for on-lending to home-owners, housing associations, condominiums and cooperatives as well as private service providers in the residential sector to improve energy efficiency.
The EBRD started investing in Turkey in 2009 and currently operates from offices in Istanbul, Ankara and Gaziantep. To date, the Bank has invested over €4 billion in the country across some 130 projects in infrastructure, energy, agribusiness, industry and finance. In just five years the EBRD’s portfolio in Turkey has become one of the largest among the countries where the Bank works.