The European Fund for Southeast Europe (EFSE), a Luxembourg-based microfinance investment vehicle (MIV), has disbursed a senior loan of EUR 20 million (USD 26.4 million) to Yapi Kredi Leasing, a financial institution that is majority-owned by Turkish commercial bank Yapi Kredi, to support its leasing services for micro-, small and medium-sized enterprises (MSMEs). Half of the funds are designated for leasing to MSMEs in unspecified lesser-developed regions of Turkey. Yapi Kredi offers leasing services for construction development, manufacturing equipment and textile machinery. Information on the terms of the loan has not been disclosed.
In 2012, Yapi Kredi reported total assets of TRY 131.5 billion (USD 67.2 billion), deposits of TRY 71.1 billion (USD 36.4 billion) and 6.5 million customers. As of June 2013, EFSE has an investment portfolio of EUR 774 million (USD 1 billion).
By Meraj Husain, Research Associate
About Yapi Kredi
Founded in 1944, Yapi Kredi is a privately owned bank with approximately 1,000 branches that offers private, retail, commercial and corporate banking services in Turkey. In 2012, Yapi Kredi reported total assets of TRY 131.5 billion (USD 67.2 billion), deposits of TRY 71.1 billion (USD 36.4 billion) and 6.5 million customers.
About European Fund for Southeast Europe (EFSE)
The European Fund for Southeast Europe (EFSE) was established in 2005 by Kreditanstalt für Wiederaufbau (KfW), a German development bank; with financial support from the German Federal Ministry for Economic Cooperation and Development (known by its German acronym BMZ), which supports economic development both in Germany and abroad; and the European Commission, the executive body of the European Union. EFSE seeks to aid economic development in southeastern Europe and parts of central Asia by supporting the provision of financial services to low-income households and micro- and small enterprises via local financial institutions. EFSE is privately managed, with Oppenheim Asset Management Services of Luxembourg acting as fund manager and Finance in Motion GmbH of Germany acting as fund advisor. As of June 2013, EFSE has an investment portfolio of EUR 774 million (USD 1 billion). As of 2013, EFSE holds a microfinance label from Luxembourg Fund Labeling Agency (LuxFLAG), an NGO that certifies that social investment vehicles actually invest as advertised.
Sources and Additional Resources
[1] European Fund for Southeast Europe: “EFSE partners with Yapi Kredi Leasing to support MSMEs in priority development regions of Turkey,” http://www.efse.lu/Press-releases—Details—2014-04-03-EFSE-partners-with-Yap—Kredi-Leasing-to-support-MSMEs-in-priority-development-regions-of-Turkey——_nav.52_siteid.134_entryid.527_dir._likecms.html
MicroCapital, October 31, 2013, “European Fund of Southeast Europe (EFSE) Loans $31m to Komercijalna Banka Beograd of Serbia, Microfinance Institution Patria Credit of Romania,” https://www.microcapital.org/microcapital-brief-european-fund-for-southeast-europe-efse-loans-31m-to-komercijalna-banka-beograd-of-serbia-microfinance-institution-patria-credit-of-romania/
MicroCapital, 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, January 7, 2013, “European Fund for Southeast Europe (EFSE) Loans $32m to Garanti Leasing 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: Yapi Kredi
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Yapi+Kredi
MicroCapital Universe Profile: European Fund for Southeast Europe (EFSE) https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Fund+for+Southeast+Europe+%28EFSE%29
Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/
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