First EIF/DEG deal provides finance to SMEs in Turkey

The EIF and the Deutsche Investitions- und Entwicklungsgesellschaft mbH (DEG) have signed a securitization deal  to provide financing in Turkish lira subscribing bonds for 90 million Turkish lira (corresponding to appr. 35 million euros), issued by the Turkish DenizBank A.S., one of Turkey’s leading commercial banks with a focus on SMEs in the agricultural sector.

In Turkey, rural enterprises often have limited access to finance and DenizBank is the country's first private bank to specialise in this field. With more than 600 domestic branches, it reaches customers. DenizBank is planning to further develop its branch network within the next few years. The long-term refinancing will allow the bank to provide more loans, which in turn enables its customers to create and secure additional jobs.

DEG, a subsidiary of KfW, subscribes for bonds in local currency, thereby making a contribution to the development of the Turkish capital market. DenizBank is one of the first Turkish banks to issue long-term covered bonds amounting to the equivalent of around 220 million euros. The transaction, structured by Unicredit, is regarded as highly innovative and therefore sends out important signals to other Turkish banks.

Read more in the press release issued by DEG

About the EIF

EIF's central mission is to support Europe's small and medium-sized businesses (SMEs) by helping them to access finance.  EIF designs and develops venture capital and guarantees instruments which specifically target this market segment. In this role, EIF fosters EU objectives in support of innovation, research and development, entrepreneurship, growth, and employment. The EIF total net commitments to private equity funds amounted to over EUR 6.5bn at end 2012. With investments in over 400 funds, the EIF is a leading player in European venture due to the scale and the scope of its investments, especially in high-tech and early-stage segments. The EIF guarantees loan portfolio totalled over EUR 8bn in close to 250 operations at end 2012, positioning it as a major European SME guarantees actor and a leading micro-finance guarantor.

Press contact

• DEG: Anja Strautz E-mail: presse@deginvest.de 
• EIF: David Yormesor, d.yormesor@eif.org