The European Bank for Reconstruction and Development (EBRD), a multilateral institution headquartered in London that aims to finance operations that are both commercially viable and assist development, has announced that it is considering granting subordinated debt of EUR 30 million (USD 39.6 million) to Fibabanka A.S., a private bank based in Turkey, with the aim of supporting growth of the Turkish micro-, small and medium-sized enterprise (MSME) sector. The debt would be made available in two tranches over an unspecified time period.
Fibabanka is a Turkish bank with 35 offices that is owned by Fiba Holding, a Turkish investment company with holdings in banking, insurance, leasing and private equity. Financial information for Fibabanka is not publicly available. As of 2013, Fiba Holding reported assets of USD 18 billion, total equity of USD 3 billion and holdings in 74 companies.
ERBD assists development in 29 countries in Eastern Europe, Central Asia and North Africa 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.
By Makai McClintock, Research Associate
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 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.
Sources and Additional Resources
EBRD Announcement, “Fibabanka – Subordinated Debt,” http://www.ebrd.com/pages/project/psd/2013/44965.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/
MicroCapital Universe Profile: European Bank for Reconstruction and Development (ERBD) https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Bank+for+Reconstruction+and+Development+%28EBRD%29
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