The European Investment Bank is reinforcing its support to small and medium-sized enterprises (SMEs) and mid-sized companies (midcaps) in Turkey via a EUR 150 million investment participation in a new programme introduced by Akbank, a long-standing partner of the EIB in Turkey. Akbank is inaugurating a covered bond programme, the first in Turkey backed by residential mortgages.

EIB’s participation will be in the first bond series issued under Akbank’s newly-established programme. Akbank will on-lend the proceeds of the EIB series to eligible SMEs and midcaps. Through this operation, the EIB is continuing its successful cooperation with Akbank, building on Akbank’s strong position in the SME segment and leveraging its broad geographical outreach. This new credit line increases the availability and maturity of funding for SMEs and midcaps in Turkey, which are an essential part of the country’s economy. With this new facility, the EIB is supporting further investment with export potential in Turkey, for growth and job creation. 

EIB Vice-President Pim van Ballekom stated: “As the European Union’s bank, we are keen to reconfirm our substantial, swift and strong support for Turkey, which remains the largest recipient country of EIB financing outside the EU. Today we are signing a groundbreaking operation, the first ever residential mortgage covered bond in Turkey. Following the successful launch of SME covered bonds in Turkey; the inauguration of mortgage covered bonds in the Turkish market is expected to have a catalytic effect, adding one more innovative funding option to the long-term funding toolset available to Turkish banks for the benefit of SMEs and midcaps. I am also particularly pleased that this operation demonstrates the exemplary cooperation between Akbank and the EIB.”