MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) Considering $78m Facility for Sekerbank of Turkey for Micro-, Small, Medium-Sized Enterprises

The UK-based European Bank for Reconstruction and Development (EBRD) recently revealed the pending approval of a EUR 60 million (USD 78 million) finance facility for Sekerbank T.A.S., a Turkish commercial bank.  If approved by the EBRD board, the facility would be disbursed in three tranches for on-lending to micro-, small and medium-sized enterprises (MSMEs) in the agribusiness sector in an effort to mobilize funds to remote areas of the country and to support women-owned businesses under the EBRD’s Women in Business (WIB) Initiative. Sekerbank also would receive technical assistance under the Turkey MSME Lending Technical Co-operation Programme funded by the EU Turkey Private Sector Support Facility [1].

As of 2012, Sekerbank reported total assets of TRY 14.5 trillion (USD 7.7 billion), total loans of TRY 10.1 trillion (USD 5.3 billion), deposits of TRY 10.1 trillion (USD 5.4 billion), return on assets (ROA) of 1.66 percent and return on equity (ROE) of 13.17 percent [2].

In 2012, EBRD invested EUR 1 billion (USD 1.3 billion) in 28 projects across the energy, telecommunications, municipal infrastructure and financial sectors in Turkey [3].

By Jennifer Young, Research Associate

About European Bank for Reconstruction and Development
The European Bank for Reconstruction and Development (EBRD) is a multilateral institution headquartered in London. The bank began operations in 1991 upon the agreement of 40 countries and is now owned by 61 countries as well as the European Investment Bank and the European Union. It aims to finance operations that are both commercially viable and assist development in 29 countries in Eastern Europe, Central Asia and North Africa. It does this by providing loans, debt securities, equity investments, guarantees and technical assistance to micro- and small businesses via commercial banks and non-bank microfinance institutions (MFIs). In 2012, EBRD invested EUR 8.7 billion (USD 11.4 billion) in 388 projects.

About Sekerbank T.A.S.
Founded in 1953 as “Sugar Beet Cooperative Bank”, Sekerbank is a Turkish commercial bank that serves small and medium-sized enterprises (SMEs) and agricultural producers. Sekerbank provides services to 1.4 million customers through 282 branches in 70 cities in Turkey and a representative office in Germanya. As of 2012, Sekerbank reported TRY 14.5 trillion (USD 7.7 billion), total loans of TRY 10.1 trillion (USD 5.3 billion), deposits of TRY 10.1 trillion (USD 5.4 billion), return on assets (ROA) of 1.66 percent and return on equity (ROE) of 13.17 percent.

Sources and Additional Resources

[1] European Bank for Reconstruction and Development Project News, “Sekerbank, MSME Financing Facility,” http://www.ebrd.com/pages/project/psd/2013/44964.shtml

[2] Sekerbank 2012 Annual Report, http://www.sekerbank.com.tr/english/files/annual_reports_2012.pdf

[3] European Bank for Reconstruction and Development Countries, “Turkey,” http://www.ebrd.com/pages/country/turkey.shtml

MicroCapital Story, May 21, 2013, “MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) Loans $80m to Turkey’s Vakiflar Bankasi (Vakifbank) for SME Energy-Efficiency Projects,”
https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-loans-80m-to-turkeys-vakiflar-bankasi-vakifbank-for-sme-energy-efficiency-projects/

MicroCapital Story, April 17, 2013, “MICROCAPITAL BRIEF: European Bank for Reconstruction and Development Loans $197m to Turkey’s Isbank to Support Small, Medium-sized Enterprises, $350m to Turkish Banks for Energy Efficiency,” https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-loans-197m-to-turkeys-isbank-to-support-small-medium-sized-enterprises-350m-to-turkish-banks-for-energy-efficiency/

MicroCapital Story, March 8, 2013, “MICROCAPITAL BRIEF: EBRD Plans $200m to Expand Turkish Sustainable Energy Finance Facility (TurSEFF) for Small and Medium-sized Enterprises, Private Households,” https://www.microcapital.org/microcapital-brief-ebrd-plans-200m-to-expand-turkish-sustainable-energy-finance-facility-turseff-for-small-and-medium-sized-enterprises-private-households/

MicroCapital Story, January 7, 2013, “MICROCAPITAL BRIEF: European Fund for Southeast Europe (EFSE) Loans $32m to Garanti Leasing of Turkey to Boost Services to Micro, Small and Medium-Sized Enterprises,” https://www.microcapital.org/microcapital-brief-european-fund-for-southeast-europe-efse-loans-32m-to-garanti-leasing-to-boost-services-to-microsmall-and-medium-sized-enterprises/

MicroCapital Story, November 14, 2012, “MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) Lends $70m to Garanti Bank of Turkey, Hipotekarna Banka of Montenegro, Bai Tushum of Kyrgyz Republic,” https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-lends-70m-to-garanti-bank-of-turkey-hipotekarna-banka-of-montenegro-bai-tushum-of-kyrgyz-republic-2/

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