BAKU, Azerbaijan, November 10. The Turkic
Investment Fund (TIF) has committed $10 million to a five-year
syndicated financing facility for Türkiye’s Şekerbank T.A.Ş.,
marking its first financing operation in the country, according to
a TIF press release dated November 9.
The $170 million facility, arranged by the Dutch Entrepreneurial
Development Bank (FMO), will support Şekerbank’s inclusive and
sustainable banking activities, expanding access to finance for
rural micro, small and medium-sized enterprises (MSMEs),
women-owned and women-led businesses, and projects in sustainable
agriculture and the green transition.
The syndicate brings together international development finance
institutions and impact investors along with the Turkic Investment
Fund: FMO; Proparco, the private sector financing arm of the French
Development Agency (AFD) group; the Development Bank of the
Republic of Austria (Oesterreichische Entwicklungsbank AG – OeEB);
the Finnish Fund for Industrial Cooperation Ltd (Finnfund); the
BlueOrchard Microfinance Fund (BOMF); and responsAbility
Investments AG.
Şekerbank was founded in 1953 in Eskişehir with the savings of
sugar-beet cooperative farmers. Headquartered in Istanbul and
listed on Borsa Istanbul Exchange, the Bank operates 239 branches
in 68 provinces. Şekerbank will on-lend the proceeds to small and
medium sized enterprises and microenterprises operating in rural
areas and engaged in cross-border trade and services, to
women-owned and women-led businesses, and to sustainable
agriculture and green transition investments.
Ramil Babayev, Director General of the Turkic Investment Fund,
pointed out that this loan marks the execution of the first
financing operation in Türkiye.
“With this facility, TIF marks its first financing transaction
in Türkiye. We are pleased to partner with Şekerbank, whose 73-year
banking experience and strong reach among rural MSMEs provide a
solid foundation for this cooperation. Our participation brings
together two central elements of TIF’s mandate: private sector
development with financial inclusion and regional economic
integration. TIF’s financing is earmarked for Şekerbank clients
engaged in cross-border trade and services, business expansion and
joint ventures with partners in our Member States. We thank
Şekerbank for its commitment to these shared objectives and FMO for
bringing this syndicate together,” Babayev said.
The Turkic Investment Fund (TIF) is the first international
financial institution jointly established by the Turkic states,
with a mandate to foster economic cooperation, increase
intra-regional trade and support sustainable development across the
Turkic world. Established by the decision of the Council of Heads
of State of the Organization of Turkic States (OTS), TIF finances
projects in priority sectors including sustainable MSME development
and financial inclusion, physical and digital infrastructure,
renewable energy, agriculture, transport and logistics, and
cross-border trade. In delivering on its mandate, TIF actively
deploys its financing through co-financing and co-investment
structures alongside leading multilateral development banks and
development finance institutions.
