MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) Loans $68m to Garanti Leasing of Turkey to Support On-lending to Micro-, Small, Medium-sized Enterprises (MSMEs)

The European Bank for Reconstruction and Development (EBRD), a UK-based multilateral financial institution, has opened a credit line of EUR 50 million (USD 68.3 million) for Garanti Leasing (GL), a leasing company subsidiary of Turkey’s Garanti Bank (GB), to be on-lent to micro-, small and medium-sized enterprises (MSMEs) in the country. GL will provide funding and expertise to assist MSMEs in underserved regions, who will use the proceeds to finance long-term leasing of machinery and equipment.

Financial data on Garanti Leasing is not available, but GB reports assets of USD 106 billion as of September, 2013. In 2012, EBRD invested EUR 8.7 billion (USD 11.4 billion) in 388 projects across 34 countries.

By Tejas Jain, Research Associate

About Garanti Leasing (GL)

Operating in the leasing sector since 1990, Garanti Leasing (GL) is a subsidiary of Turkey-based Garanti Bank (GB) and serves corporate, commercial and small and medium-sized enterprises by financing their product and equipment investments, including vehicles, equipment for construction and manufacturing, agricultural machinery, textile machinery and printing presses as well as real estate investments. Financial data on Garanti Leasing is not available, but GB reports assets of USD 106 billion as of September, 2013.

About European Bank for Reconstruction and Development (EBRD)

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 it 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:

European Bank for Reconstruction and Development, “Loan of up to €50 million to Garanti Leasing to support Turkish MSMEs,”
www.ebrd.com/pages/news/press/2013/131216e.shtml

MicroCapital Article, January 8, 2014, “European Bank for Reconstruction and Development (EBRD) Loans $4m to Microfund for Women (MFW) of Jordan to Support Onlending to Female Entrepreneurs,”
https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-loans-4m-to-microfund-for-women-mfw-of-jordan-to-support-onlending-to-female-entrepreneurs/

MicroCapital Article, December 27, 2013,  “European Bank for Reconstruction and Development (EBRD) May Loan $27m to Tunisie Leasing to Support On-lending to Micro-, Small, Medium-sized Enterprises (MSMEs) in Tunisia,”
https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-may-loan-27m-to-tunisie-leasing-to-support-on-lending-to-micro-small-medium-sized-enterprises-msmes-in-tunisia/

MicroCapital Article, October 4, 2013, “European Bank for Reconstruction and Development (EBRD) Considers Lending $23.5m to Russia’s Transcapitalbank for Residential Energy Efficiency,”
https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-considers-lending-23-5m-to-russias-transcapitalbank-for-residential-energy-efficiency/

MicroCapital Article, July 9, 2013, “European Bank for Reconstruction and Development Loans $80m to Turkey’s Yapi Kredi for SME Energy Efficiency Projects,”
https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-loans-80m-to-turkeys-yapi-kredi-for-sme-energy-efficiency-projects/

MicroCapital Article, January 7, 2013, “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: Garanti Leasing (GL)
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Garanti+Leasing#Garanti_Leasing

MicroCapital Universe Profile: Garanti Bank (GB)
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=garanti+bank

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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