The UK-based European Bank for Reconstruction and Development (EBRD) recently loaned USD 65 million to Türk Ekonomi Bankasi (TEB), a Turkish commercial bank, to be on-lent to micro-, small and medium-sized enterprises (MSMEs) in an effort to boost agribusinesses in rural areas of Turkey [1]. TEB is controlled by BNP Paribas SA, a financial services provider headquartered in Paris, and Çolakoglu Group, a Turkish construction company.
In 2011, TEB reported total assets of TRY 38 billion (USD 19.6 billion), a gross loan portfolio of TRY 26 billion (USD 13.4 billion), deposits of TRY 23 billion (USD), 3.8 million clients and return on equity of 5.36 percent [2]. In 2012, EBRD invested EUR 1 billion (USD 1.3 billion) in 28 projects in Turkey [3] during which time EBRD invested EUR 8.7 billion (USD 11.4 billion) in 34 countries.
By Jennifer Young, Research Associate
About Türk Ekonomi Bankasi
Founded in 1927, Türk Ekonomi Bankasi (TEB) is a commercial bank that offers financial services in Turkey. TEB is controlled by BNP Paribas SA, a financial services provider headquartered in Paris, and Çolako?lu Group, a Turkish construction company. In 2011, TEB reported total assets of TRY 38 billion (USD 19.6 billion), a gross loan portfolio of TRY 26 billion (USD 13.4 billion), deposits of TRY 23 billion (USD), 3.8 million clients and return on equity of 5.36 percent.
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 owned by 61 countries as well as the European Investment Bank and the European Union as of 2012. 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 across 34 countries.
Sources and Additional Resources
[1] European Bank for Reconstruction and Development Press Release, “EBRD Helps Finance Small Business in Rural Turkey,” http://www.ebrd.com/pages/news/press/2013/130701e.shtml
[2] Türk Ekonomi Bankas?. Annual Report 2011, http://www.teb.com.tr/Document/yi/faal_rapor/TEB_2011_ENG_FINAL.pdf
[3] European Bank for Reconstruction and Development Factsheets, “Turkey,” http://www.ebrd.com/downloads/research/factsheets/turkey.pdf
MicroCapital Story, June 10, 2013, “MICROCAPITAL BRIEF: European Bank for Reconstruction and Development May Offer $40m in Subordinated Debt to Turkey-based Fibabanka,” https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-may-offer-40m-in-subordinated-debt-to-turkey-based-fibabanka/
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 Universe Profile: Türk Ekonomi Bankasi, https://www.microcapital.org/microfinanceuniverse/tiki-editpage.php?page=T%C3%BCrk+Ekonomi+Bankasi&hdr=5
MicroCapital Universe Profile: European Bank for Reconstruction and Development (EBRD), http://microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Bank+for+Reconstruction+and+Development+%28EBRD%29
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