The European Investment Bank (EIB) subscribed to the USD 221.2 million (EUR 200 million) Diversified Payment Rights (DPR) of Türkiye İş Bankası A.S. (Isbank). Funding is provided in support of small and medium sized enterprises (SMEs), as well as mid-caps in a number of productive sectors such as, manufacturing, services and tourism across Turkey, The notes are issued under Isbank’s already established DPR programme, with which the EIB is already familiar, following its subscription to a series of notes issued out of the Isbank DPR programme for an amount of EUR 150 million in 2012.
On this occasion, EIB Vice President responsible for Turkey, Pim van Ballekom stated: ‘Isbank is a long-standing EIB partner providing EIB funding to a wide range sectors including climate change, sustainable growth and urban transformation facilities. Leveraging on its extensive network and its leading position in the Turkish market, Isbank has proved to be a valuable partner for us in reaching sound SME and Mid-Cap investments. This new funding provided through a financial scheme based on Diversified Payment Rights securitization, a funding scheme already well tested with Isbank in 2012 underlines the continuing commitment of the EIB to supporting Turkish investment projects via reliable local banking partners.’
Six EIB facilities with Isbank have already been successfully allocated to SMEs, with good sector and regional diversification. Furthermore, EIB’s participation, to the Isbank DPR programme already since 2012 has had a strong signalling effect for other commercial investors. In this way, the EIB makes a substantial contribution to the development of the domestic capital markets, enabling Turkish banks to access stable and longer-dated capital market instruments.
The EIB facilities increase the availability and maturity of funding for SMEs and mid-caps in Turkey, which are an essential part of the country’s economy and growth potential.