EIB participates in innovative covered bond programme for SMEs in Turkey

The European Investment Bank has purchased Sekerbank T.A.S. covered bonds worth 120 million Turkish lira (EUR 50 million) in support of SMEs in Turkey. 

This innovative financing instrument is the first covered bond in Turkey and the first covered bond backed by a portfolio of SME receivables.

This facility is intended to support the manufacturing, food processing and services sectors, mainly in the least developed provinces of Turkey, i.e. Eastern and South-Eastern Anatolia.

EIB Vice-President Matthias Kollatz-Ahnen stated on this occasion: “As the European Union’s bank, we are keen to reconfirm our large, swift and strong support for Turkey, which remains the largest recipient country of EIB financing outside the EU. Ongoing support for the country’s small and medium-sized enterprises (SMEs) has been prioritised since 2009. Today, we are signing a groundbreaking operation by launching a completely new product. This is the first ever SME covered bond in Turkey. It is expected to have a catalytic effect in the development of the Turkish capital market, as other banks will be inclined to follow in this new product niche. Furthermore we are focusing on the least developed regions of Eastern and South-Eastern Anatolia, where access to credit is particularly scarce. We are enlarging our banking partner network by teaming up for the first time with Sekerbank, which has particularly strong links in these areas. I am also particularly pleased that this operation demonstrates the exemplary cooperation among several international financing institutions.”