European bank backs women-led businesses in Turkey
European Bank for Reconstruction and Development provides $100M for Denizbank to on-lend money to local businesses
The European Bank for Reconstruction and Development (EBRD) has provided a $100 million fund for Denizbank to support companies' investments in green technologies and women-led businesses in Turkey amid the COVID-19 pandemic.
The loan with a long-term maturity of up to seven years will help to build the resilience of the Turkish economy, the EBRD said in a statement on Friday.
"The financing is made available through an investment under Denizbank's existing Diversified Payment Rights (DPR) program, an established market instrument used by Turkish banks to raise long-term funding," the statement read.
Denizbank is planning to issue a total of $435 million, marking its return to DPR securitization under the Emirates NBD Bank’s ownership.
The issuance has attracted a host of investors, including the International Finance Corporation, Credit Suisse, and the parent Emirates NBD Bank.
DenizBank Financial Services Group CEO Hakan Ates said the transaction is also a testament to the improving confidence in the Turkish economy.
EBRD First Vice President Jurgen Rigterink remarked that the funding is a landmark transaction on several accounts, marking the lender's return to its DPR program and allowing the EBRD to provide new financing for women entrepreneurs and green investments by smaller businesses such as those in renewable energy, resource efficiency, waste minimization, and water savings.
"And third, by joining forces with the EU, the Turkish Credit Guarantee Fund and the Ministry of Treasury and Finance, the EBRD and Denizbank will be able to achieve a greater impact of our financing,” Rigterink said.
The funds will be equally split between the women in the business program to finance women-led small and medium-sized entrepreneurs and the Turkey Sustainable Energy Finance Facility program in support of resource efficiency and small-scale renewable energy investments.
The EU is supporting both initiatives with grant funding.
The new investment follows a record €893 million ($1.08 million) in financing to Turkish financial institutions in 2020.
The EBRD is a major investor in Turkey and to date, the bank has invested almost €13 billion in the country through 334 projects, 95% of which is in the private sector.
In 2019, the Emirates NBD Bank PJSC of United Arab Emirates bought 99.85% shares of private lender Denizbank.Anadolu Agency website contains only a portion of the news stories offered to subscribers in the AA News Broadcasting System (HAS), and in summarized form. Please contact us for subscription options.