05.11.2024
Şekerbank has received a five-year, approximately US$160 million loan devoted entirely to social and environmental development with the participation of six international development financial institutions and impact investors under the lead arrangement of the Dutch Development Bank (FMO). The Japan International Cooperation Agency (JICA), which took part in the syndication in which a wide range of global-scale investors participated both directly and indirectly , has thus made its first private sector investment in Türkiye in Şekerbank.
The aforementioned loan will be used to support SMEs and micro-enterprises, with a prioritized focus on the development of rural areas, in financing of projects in the fields of sustainable agriculture and women's banking.
The loan participants include six international financial institutions, namely the arranger of the syndicate the Dutch Entrepreneurial Development Bank (FMO), Proparco, a subsidiary of the French Development Agency (AFD), the Japan International Cooperation Agency (JICA), which is set to extend financing to a Turkish private bank for the first time, the European Fund for Southeast Europe S.A. (EFSE) as well as BlueOrchard Microfinance Fund (BOMF) and ILX Fund (ILX), which are environmental and social development- focused funds established on a global scale through the contribution of many governmental’ and institutional investors.
Having assumed a leading role amongst private deposit banks in financing sustainable rural development for 71 years, Şekerbank has entered into a major collaboration to further develop its well-established relations with international development-finance institutions. The bank has received a five-year syndicated multi-currency loan of approximately US$160 million from six development-oriented international institutions led by the Dutch Entrepreneurial Development Bank (FMO), to be used entirely for social and environmental development. With the loan extended to Şekerbank, this is the first time the Japan International Cooperation Agency (JICA) has invested in the private sector in Türkiye.
The signing ceremony for the loan received by Şekerbank was held with the participation of six international financial institutions, including the arranger of the syndicate Dutch Entrepreneurial Development Bank (FMO), Proparco, the private sector representative of the French Development Agency (AFD), the Japan International Cooperation Agency (JICA), the European Fund for Southeast Europe S.A. (EFSE) as well as BlueOrchard Microfinance Fund (BOMF) and ILX Fund (ILX), which are impact funds focused on environmental and social development. The signing ceremony was also attended by Consul General of the Netherlands in Istanbul Arjen Uijterlinde, and Consul General of Japan in Istanbul Kenichi Kasahara.
The syndicated loan facility, which comprises a Euro and a US Dollar tranche, will be used for SMEs and micro-enterprises with a prioritized focus on rural areas, sustainable agriculture and women's banking.
Aybala Şimşek Galpin: “International financial institutions recognize Şekerbank as a pivotal player in sustainable and inclusive finance.”
Hosting the press conference, Şekerbank Chief Executive Officer Aybala Şimşek Galpin expressed gratitude to all participating institutions for their contributions to Türkiye's social and environmental development, and stated: “International financial institutions continue to recognize Şekerbank as a pivotal bank in Türkiye in order to reach out to farmers and SMEs in off-center regions, support sustainable and inclusive finance. Thus, Şekerbank’s foreign funding is entirely obtained from development-oriented international financial institutions (DFIs) solely for social and environmental purposes. In this regard, we are grateful to FMO, the Dutch Entrepreneurial Development Bank, which has always been an invaluable partner for Şekerbank in supporting impact-focused development, for boosting its support to our bank through such a widely participated and prestigious international project.”
Aybala Şimşek Galpin: “Broad international investor interest is confirmation of confidence in the medium-to-long-term outlook of the Turkish economy.”
Şimşek emphasized that the five-year loan, participated in by international financial institutions from the Netherlands, Japan and France, as well as impact-focused global funds whose founders include numerous governmental and institutional investors, also confirms how positive the outlook of the Turkish economy is in the medium to long-term and added: “The confidence built in the Turkish economy through the implementation of determined and consistent policies, along with Şekerbank’s sustained strong financial performance, is attracting new investors to our country.”
Aybala Şimşek Galpin: “We are proud to be the first Turkish private bank to receive financing from the Japan International Cooperation Agency (JICA).”
Şimşek expressed her gratitude to the Japan International Cooperation Agency JICA, which within the scope of the syndication has made its first private sector investment in Türkiye, and said, “We are proud to be the first private bank in Türkiye to receive financing from JICA and we aim to further improve our sustainable development-oriented banking activities through this new collaboration in a manner that will also contribute to the relations between the two countries.”
Aybala Şimşek Galpin also extended her appreciation to Proparco, a subsidiary of the French Development Agency (AFD), for participating in the syndication. She remarked, “With the funding we provide from Proparco, we aim to exert exemplary efforts in Turkiye to include women in the economy in rural areas and increase micro-enterprises' access to finance.”
In her speech, Şimşek also thanked EFSE, BOMF and ILX and expressed their happiness with the interest shown by the wide investor base represented by these funds in Şekerbank's financial performance and social-environmental impact-oriented activities.
Ruhi Coşgun: “We are incredibly proud to be the lead arranger of this large, syndicated investment in Şekerbank.”
Ruhi Coşgun, FMO Regional Manager of Financial Institutions ECA/MENA said the following regarding the loan: “We are incredibly proud to be the lead arranger of this large syndicated loan to Şekerbank, FMO’s long standing partner in sustainable impact in Türkiye. We are particularly proud to have mobilized a significant amount through a network of esteemed partners. By working together, we are building a more inclusive and equitable future for all.”
Daisuke Watanabe: “Our very first private sector investment in Türkiye is in Şekerbank.”
Speaking at the ceremony regarding the widely-participated loan provided to Şekerbank, Daisuke Watanabe, JICA Chief Representative, noted: “This will be JICA’s very first Private Sector Investment and Financing Project for Türkiye. Through the facility, JICA would like to contribute to, not only financing, but also connecting between MSMEs in Japan and Türkiye. I believe it will become another “bridge and symbol” of our cooperation.”
Stéphane Froissardey: “The financing that we provide to Şekerbank marks a significant step in our commitment to advancing gender inclusion.”
Commenting on the loan facility, Stéphane Froissardey, Proparco’s Regional Director for Türkiye, Caucasus, Balkans and Central Asia, stated: “We are very pleased to support Şekerbank with this financing which marks a significant step in our commitment to advancing gender inclusion and supporting MSMEs. By prioritizing gender equality in impactful projects, we aim to foster sustainable economic growth in Türkiye, to enhance financial inclusion and create equal opportunities for all.”
Şekerbank, which has deep-rooted relationships with development-oriented international financial institutions, signed a loan agreement worth $100 million with the U.S. International Development Finance Corporation (DFC), aimed at supporting the development of regions affected by the earthquake disaster and providing financial support to small and medium businesses prioritizing those that are women-owned or led, in 2023. Most recently, the bank secured financing of €25 million from the European Bank for Reconstruction and Development (EBRD) to support sustainable agricultural activities in rural areas, with a particular focus on energy efficiency in agriculture, under the Türkiye Green Economy Financing Facility (Türkiye GEFF II).