Şekerbank has received a five-year syndicated loan of USD 170 million in total from seven international development finance institutions and impact investors, led by the Dutch Entrepreneurial Development Bank (FMO), to support its sustainable and inclusive banking activities.
As Türkiye prepares to host the COP31 Climate Summit, the secured funding will expand access to finance for rural SMEs, microenterprises and women entrepreneurs, while also supporting sustainable agriculture and investments in the green transition.
Led by FMO, the syndicated loan brought together Proparco, a subsidiary of the French Development Agency (AFD); the Development Bank of Austria (OeEB); the Finnish Fund for Industrial Cooperation (Finnfund); the Turkic Investment Fund (TIF); the BlueOrchard Microfinance Fund (BOMF); and ResponsAbility Investments in addition to FMO. The transaction marks the first time Finnfund and TIF have provided financing to a bank in Türkiye.
With 73 years of experience in inclusive and sustainable banking, Şekerbank is recognised by international development finance institutions as a key partner in accessing MSMEs, particularly in rural areas. Building on this expertise, the Bank has signed another major agreement for a five-year syndicated loan of USD 170 million, with seven international development finance institutions and impact investors.
In addition to FMO, which also led the syndication, Proparco, a subsidiary of the French Development Agency (AFD); the Development Bank of Austria (OeEB); the Finnish Fund for Industrial Cooperation (Finnfund); the Turkic Investment Fund (TIF); the BlueOrchard Microfinance Fund (BOMF); and ResponsAbility Investments participated in the syndication. Notably, the transaction marks the first time Finnfund and TIF have invested in a bank in Türkiye.
The proceeds will be used to improve access to finance for SMEs and microenterprises operating in rural areas, promote sustainable agricultural practices, support women entrepreneurs and finance investments in the green transition.
The ceremony marking the loan secured by Şekerbank was held with the participation of the Netherlands Development Finance Company (FMO), which led the syndication, Proparco, a subsidiary of the French Development Agency (AFD), the Austrian Development Bank (OeEB), and the Turkish Investment Fund (TIF). The ceremony was also attended by Daan Huisinga, Consul General of the Netherlands in Istanbul, and Doris Fida-Šrajner, Consul General of Austria in Istanbul.
Aybala Şimşek Galpin: “We are proud to serve as a bridge between international financial institutions and Anatolia’s farmers and SMEs”
Commenting on the new syndicated loan, Şekerbank CEO Aybala Şimşek Galpin said: “This valuable and meaningful funding, secured to deliver social and environmental impact, is a strong endorsement by international development finance institutions of Şekerbank’s 73 years of expertise in sustainable banking. Even by bringing banking services to districts with no bank branches, we continue our longstanding pioneering role in inclusive banking and we are proud to serve as a bridge between international financial institutions and Anatolia’s farmers and SMEs.”
“The broad range of lenders demonstrates international financial institutions’ commitment to Türkiye’s sustainable development”
Şimşek Galpin thanked FMO and all participating financial institutions for their support for the FMO-led syndicated loan, saying: “Following the approximately USD 160 million syndicated loan we secured in 2024 from six international financial institutions under FMO’s leadership, we thank FMO for leading this new syndicated loan of USD 170 million with seven international financial institutions. We are proud to be FMO’s strategic partner for impact-driven banking in Türkiye.”
“The high calibre of the lenders participating in this syndication is particularly significant. The broad range of participants demonstrates the commitment of all the international financial institutions involved, to Türkiye’s sustainable development, and we are thankful to each of them.” she added.
“Setting an example in inclusive green finance on the road to COP31”
Şimşek Galpin underlined that the syndicated loan sets an example for financing inclusive green transition in this important year, as Türkiye prepares to host the COP31 Climate Summit and said: “This new funding will enable us to further accelerate our activities in sustainable agriculture, the green transition, women’s entrepreneurship and inclusive finance. In doing so, we will continue to contribute to rural development and to our country’s sustainable growth and climate goals.”
“Local expertise and international capital can deliver meaningful impact”
Frouke Hoekstra, Director Financial Institutions at FMO, said: "Şekerbank's deep roots in local communities and its longstanding commitment to sustainable and inclusive banking make it a valued partner for FMO and the wider development finance community. We are proud to have led this syndication, bringing together a diverse group of international partners around a shared development objective. The broad participation reflects international confidence in Şekerbank's ability to deliver meaningful impact and demonstrates what can be achieved when local expertise and international capital come together,"
Emmanuel Haye, Head of Financial Institutions at Proparco, said: "Proparco is proud to join forces with FMO and our international partners to support Şekerbank. By backing Turkish women entrepreneurs and green agricultural projects, this facility demonstrates how development finance can deliver tangible impact where it is needed most."
“Financing climate-friendly growth is a key strategic priority for OeEB. We are therefore pleased to deepen our cooperation with Sekerbank, a valued partner of OeEB since 2009. Through this transaction, we are expanding access to finance for green investments across Türkiye. It is an excellent example of how like-minded institutions can mobilise capital where it is most needed and work together to generate positive environmental and social impact”, said Sabine Gaber, CEO and Member of OeEB’s Executive Board.
"Şekerbank has a long track record of serving farmers, rural SMEs and other underserved customer segments across Türkiye. Through this financing, we can help expand access to finance for businesses and entrepreneurs that are essential for employment, food security and local economic development. We are pleased to establish our first partnership with a Turkish bank through this transaction and to support Şekerbank's work in sustainable agriculture, financial inclusion and the green transition," says Ulla-Maija Rantapuska, Senior Investment Manager at Finnfund.
“This transaction marks an important milestone in advancing the Turkic Investment Fund’s mission in Türkiye”
Ramil Babayev, General Director of the Turkic Investment Fund (TIF), said: “Our first bank financing in Türkiye, a founding Member State, marks an important step in advancing the Fund’s mission to support sustainable socio-economic development across its member countries. Through Şekerbank’s longstanding expertise in inclusive banking, this facility will expand access to finance for rural SMEs and microenterprises, support women entrepreneurs, and promote sustainable agriculture and green investments within the Turkic world. We are honoured to join this FMO-led syndication alongside international development partners, reflecting our shared commitment to financial inclusion and Türkiye’s long-term economic and social growth.”