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IFC invested in Şekerbank’s SME backed covered bond program with 180 million TL

25.11.2016
The International Finance Corporation (IFC), a World Bank institution, has invested in Şekerbank’s 5 years SME backed covered bond program with 180 million TL. The program, which was the first in the world, has been started by Şekerbank in 2011. The total size of the Şekerbank’s SME backed covered bond program, , has reached 1,6 billion TL with this issuance. Having a widespread SME customer profile in Turkey, Şekerbank will provide long term loans to SMEs with this transaction.


Şekerbank, initiated Turkey’s and the world’s  first SME backed Covered Bond Program (CB) in 2011 and just achieved a new issue of 180 million TL from the World Bank institution, International Finance Corporation (IFC).. Having completed its eleventh issuance of the CB program, the Bank will provide long term funding support to craftsmen, small and medium enterprises, based on its widespread SME loan profile and expertise in this field.

Servet Taze: “A confidence message to Turkey and our financial sector from international finance institutions”
Şekerbank’s General Manager, Servet Taze pointed out that the bank is building a sustainable bridge between international finance institutions and Anatolia’s SMEs for financing. He added that with this fund, the bank would continue to support the production and investments of craftsmen, small and medium enterprises. Taze continued as follows: 

“180 million TL investment of IFC, also one of the shareholders of Şekerbank, in our SME backed covered bond program affirmed Şekerbank’s expertise and wide range of loan portfolio in SME. This investment is also important to show the confidence of international institutions to Turkey and our finance sector.”

“We have reached total volume of more than 1.6 billion TL so far in Covered Bond Program”
Taze emphasized that the Covered Bond Program sets a good example for the banking sector to create alternative funds for supporting sustainable development. He also reminded us that this program of Şekerbank, which has become a role model for the sector, has also achieved awards in international markets. 

Taze, who pointed out that the Bank has reached a total volume of more than 1.6 billion TL in the program since 2011, said “We are seen as ‘Turkey’s key bank’ for reaching locals, producers, craftsmen and SMEs in Anatolia. 74 percent of the foreign funds in our balance sheet, approximately 1 billion USD, is comprised of the funds for farmers, craftsmen, small and medium enterprises.”

Manuel Reyes-Retana: “We provide access to financing for SMEs through our cooperation with Şekerbank”
IFC Financial Corporations Europe, Middle East and Northern Africa President Manuel Reyes-Retana said the following concerning the recent agreement with Şekerbank, “With this financing we are making an investment in line with the strategic goals of the IFC: supporting the access of SMEs to financing and expanding the depth of financial markets. To support small and medium businesses, which comprise the majority of economy and provide employment, are crucial for these innovative approaches. We are now renewing our cooperation with Şekerbank, an institution that has a wide range of work on this subject throughout Turkey.”

IFC has also invested in the world’s first SME loans secured Şekerbank CBP 
Şekerbank had a subordinated loan of 50 million USD from IFC and allocated 50 % of that subordinated loan to support women entrepreneurs and 50 % to support SMEs.  Besides the Bank, which has issued the first SME backed covered bond program (CB) in the world, in 2011, established a finance bridge between international financing institutions and Turkey’s SMEs. IFC had invested 44,7 million lira in  the CB  program  . IFC has also provided Şekerbank a fund of 75 million dollars in 2015 to be used in financing farmers, craftsmen, small and medium enterprises.