Turkey, EBRD Syndicates €50M Loan to Garanti Bank to Support Small Businesses

The European Bank for Reconstruction and Development (EBRD) syndicated a €50m loan facility to Garanti Bank for on-lending to micro, small and medium-sized enterprises (MSMEs) operating outside the main Turkish cities.
The proceeds of the funds will be used to finance the investments of small companies operating outside the three main Turkish cities Ankara, Istanbul and Izmir. A part of the loan will be used to continue Garanti Bank’s support to female entrepreneurs in rural areas.
The loan will also allow Garanti Bank to increase its commitment to this niche market and to broaden the geographical coverage of its lending activities through a variety of tailored financial products.
Syndicated under the EBRD A/B structure, the Bank is retaining €20m on its account with the remaining €30m provided by the Netherlands Development Finance Company (FMO), the International Co-operation and Development Fund (TaiwanICDF) as well as by a group of commercial banks including AKA Ausfuhrkredit, Bank of Taiwan, BRE Bank, Chang Hwa Bank, Land Bank of Taiwan and Raiffeisenlandesbank Niederosterreich-Wien.
Garanti Bank, which is the second largest private bank in Turkey by assets (exceeding $65bn), operates through a wide distribution network of over 750 branches including five foreign branches and four international representative offices.

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