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New funds to Garanti bank to support female-led firms in Turkey

By Olga Rosca

Garanti Bank held an award ceremony on 12 October 2016 to recognise the achievements of Turkish women entrepreneurs.

The European Bank for Reconstruction and Development (EBRD) is providing €50 million in new funds to Garanti Bank to finance Turkish companies led by women as access to credit remains limited.

The financing comes under the Finance and Advice for Women in Business programme, which is jointly funded by the European Union, the EBRD and the Republic of Turkey.

It includes a comprehensive package of dedicated credit lines to participating banks to facilitate access to finance for women-led businesses and a risk-sharing mechanism and advice to help these banks better address the financial needs and growth plans of their clients.

The programme also involves direct advice to SMEs led by women to improve the competitiveness of these businesses and a range of training, networking and mentoring opportunities.  

The financing is part of a €55 million investment in senior notes issued under Garanti Bank’s Diversified Payment Rights (DPR) securitisation programme, an established market instrument used by Turkish banks to raise long-term funding. The remaining €5 million will be used for on-lending to small businesses in Cyprus.

Noel Edison, EBRD Director for Insurance, Financial Services and Financial Institutions in Turkey, said: “This is another funding boost to Garanti Bank, the EBRD’s long-standing partner. We welcome its continuous commitment to encouraging female entrepreneurship and are pleased to provide financing to support this important undertaking.”

Nafiz Karadere, Garanti Bank Vice President for SME Banking, commented: “Garanti Bank have been encouraging female entrepreneurs for 10 years now. We are pleased to continue this support with financing and education as well as help them access new markets.”

Listed on Borsa Istanbul, Garanti Bank is the second largest privately-owned bank in Turkey and the third largest by assets. It serves nearly 14 million corporate and private customers, offering fully integrated financial services through more than 900 domestic and nine foreign branches.

The EBRD started investing in Turkey in 2009 and currently operates from offices in Istanbul, Ankara and Gaziantep. To date it has invested close to €9 billion in the country through more than 200 projects in infrastructure, energy, agribusiness, industry and finance. It has also mobilised nearly €20 billion for these ventures from other sources of financing. Some 98 per cent of the Bank’s investments in Turkey are in the private sector.

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