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

The European Bank for Reconstruction and Development (EBRD), an international finance institution headquartered in London, plans to provide a financing facility of EUR 150 million (USD 197 million) to Isbank, a Turkish commercial bank. The funds are expected to be disbursed in three tranches to be on-lent to small and medium-sized enterprises (SMEs) involved in agriculture, energy efficiency, renewable energy and women’s entrepreneurship. The deal has not been finalized [1]. Isbank has approximately 1,200 domestic branches and 17 foreign branches. In 2011, Isbank reported total assets of TRY 162 billion (USD 91 million) [2].

In 2011, EBRD disbursed a total of EUR 6.7 billion (USD 8.3 billion). EBRD also plans to provide a credit line of USD 350 million to several undisclosed commercial banks in Turkey for residential energy efficiency and conservation projects to be undertaken by homeowners, housing groups and service providers. This program has not been finalized [3].

By Brendan Millan, 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 2011, EBRD disbursed a total of EUR 6.7 billion (USD 8.3 billion).

About Isbank
Established in 1924, Isbank is a Turkish commercial bank with approximately 1,200 domestic branches and 17 foreign branches. In 2011, Isbank reported total assets of TRY 162 billion (USD 91 million).

Sources and Additional Resources:

[1] European Bank for Reconstruction and Development: “ISBANK – Comprehensive Financing Facility”, http://www.ebrd.com/pages/project/psd/2013/44962.shtml

[2] Isbank: “Annual Report 2011”, http://www.isbank.com.tr/English/PDF/AnnualReports/isbank2011.pdf

[3] European Bank for Reconstruction and Development: “Turkey Residential EEFF (TURREEFF)”, http://www.ebrd.com/pages/project/psd/2013/45195.shtml

MicroCapital.org story, March 8, 2013, “EBRD Plans $200m to Expand Turkish Sustainable Energy Finance Facility (TurSEFF) for Small and Medium-sized Enterprises, Private Households”, http://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.org story, 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”, http://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.org story, November 14, 2012, European Bank for Reconstruction and Development (EBRD) Lends $70m to Garanti Bank of Turkey, Hipotekarna Banka of Montenegro, Bai Tushum of Kyrgyz Republic”,
http://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/

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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