IFC, Black Sea Trade and Development Bank and FMO Support ABank in Türkiye
Press Release | 27-Jan-2011
IFC, a member of the World Bank Group, is partnering with the Black Sea Trade and Development Bank and FMO, the entrepreneurial development bank of the Netherlands, to provide a $105 million subordinated loan to ABank in Türkiye. The agreement has been signed between the parties on December 22, 2010.
The loan will help ABank expand its capital base and increase lending to small and medium enterprises, its traditional clients, and a natural target of IFC and its partner development finance institutions. Small and medium enterprises represent nearly 99 percent of all businesses and 75 percent of total employment in Türkiye.
IFC is lending $50 million and has helped mobilize $30 million from BSTDB and $25 million from FMO. The 10-year loan will be the first syndicated subordinated facility in Türkiye to qualify as Tier II capital, which is the second-most reliable form of capital in regulatory terms.
“The support extended to ABank by IFC, BSTDB and FMO demonstrates the Bank’s solid standing and also confirms its increasing penetration in the SME segment,” said Hamit Aydoğan, CEO of ABank. “The facility will further strengthen ABank’s capital base and expand its balance sheet through supporting its ongoing growth strategy, with a particular focus on the SME segment. “
“ABank is a key partner for IFC in addressing the financing needs of Turkish small and medium-sized enterprises, which are crucial for economic development and job creation,” said Dimitris Tsitsiragos, IFC Director for Middle East, North Africa and Southern Europe. “The project once again demonstrates the significant role of IFC in helping to mobilize other resources for long term financing and a good example of cooperation between multilateral development institutions.”
BSTDB said in a written statement that, “This operation will be the BSTDB’s first subordinated loan in Türkiye and the first operation co-financed by IFC within the framework of the Master Cooperation Agreement, signed last year. The loan will considerably benefit ABank and subsequently its clientele, small and medium-sized enterprises. The Bank promotes synergies with other development finance institutions to maximize the development impact of its operations.
FMO Chief Investment Officer Jurgen Rigterink said: “FMO is very pleased to cooperate with its respected partners IFC and BSTDB and provide this subordinated loan to ABank, a strong institution with a clear focus on small and medium enterprises. This loan is fully dedicated to financially support the strong growth of Turkish SMEs, and will also support ABank's capital base.”
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The Black Sea Trade and Development Bank (BSTDB) is an international financial institution established by Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russia, Türkiye, and Ukraine. The BSTDB headquarters is in Thessaloniki, Greece. BSTDB supports economic development and regional cooperation by providing loans, credit lines, equity and guarantees for projects and trade financing in the public and private sectors in its member countries. The recently increased authorized capital of the Bank is SDR 3 billion (approx. USD 4,7 billion). BSTDB is rated A3 with stable outlook by Moody's.
Press Contact
Haroula Christodoulou
Tel: +30 2310 290533
Email: cchristodoulou@bstdb.org