EBRD provides US$ 175 million financing package to Turkey’s DenizBank

By Olga Rosca
@olgarosca

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EBRD Board Directors to visit Turkey

  • EBRD US$ 175 million loan helps DenizBank ramp up lending to clients under stress
  • US$ 100 million dedicated to support international trade and commerce
  • EBRD Solidarity Package to combat impact of coronavirus pandemic and support recovery

DenizBank, a key Turkish lender, will scale up its trade finance activities and lending to smaller municipalities and agricultural firms amid the coronavirus pandemic thanks to a comprehensive US$ 175 million financial package from the European Bank for Reconstruction and Development (EBRD) approved today.

Arvid Tuerkner, EBRD Managing Director for Turkey, said: “As a major investor in Turkey, the EBRD’s goal is to ensure resilience of the financial sector and the economy as a whole in these challenging times.”

Hakan Ateş, DenizBank CEO, added: “We are delighted to work together with the EBRD and provide US$ 175 million financing for the Turkish economy.

“We have recently launched a vital SME loan initiative ‘Nefes’ in collaboration with the Union of Chambers and Commodity Exchanges of Turkey (TOBB). In the hard times of the coronavirus pandemic, we continue to stand by farmers, SMEs, municipalities and our customers engaged in foreign trade, as we always do.”

Of the new funds, US$ 100 million will be dedicated to support DenizBank’s financial instruments and products that facilitate international trade and finance.

As importers and exporters grapple with disruptions, there has been a rapid rise in demand for trade finance that is vital to keep trade flowing. Financing under the EBRD’s Trade Facilitation Programme (TFP) topped half a billion euros in April for the first time in the Bank’s history.

The remaining US$ 75 million will help DenizBank increase the availability of short-term financing for municipal clients and agribusinesses that have come under stress in the ongoing crisis. 

The financing is part of the EBRD’s Solidarity Package to help companies in 38 emerging markets deal with the economic impact of the pandemic. The EBRD stands ready to provide support worth €21 billion over the 2020-21 period.

It includes short-term liquidity, working capital and restructuring of exposure for existing clients, as well as trade finance and an emergency support programme for infrastructure providers. The Bank will also ramp up its local currency, capital markets and equity offers.

The EBRD is a major investor in Turkey. Since 2009 it has invested almost €12 billion in various sectors of the country’s economy, with almost all investment in the private sector. The EBRD’s €6.7 billion Turkey portfolio is the largest among the 38 economies where the Bank invests.

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