Turkic Investment Fund Makes First Financing Deal In Türkiye

(MENAFN- AzerNews) Qabil Ashirov Read more

The Turkic Investment Fund (TIF) has completed its first financing operation in Türkiye, one of the Fund's founding member states, by participating in an international syndicated loan facility extended to Sekerbank T.A.Ş.

The Fund announced the development in a press release.

Under the five-year financing arrangement worth $170 million, organised by the Dutch Entrepreneurial Development Bank (FMO), TIF has committed $10 million to expand access to finance for rural micro, small and medium-sized enterprises (MSMEs), support women entrepreneurs, and promote sustainable agriculture and green investments.

The Fund's commitment forms part of a five-year senior loan facility arranged by FMO to support Sekerbank's inclusive and sustainable banking operations. The seven-member lending syndicate brings together international development finance institutions and impact investors.

In addition to the Turkic Investment Fund and FMO, the syndicate includes Proparco, the private-sector financing arm of the French Development Agency (AFD) Group; Oesterreichische Entwicklungsbank AG (OeEB), the Development Bank of Austria; the Finnish Fund for Industrial Cooperation (Finnfund); the BlueOrchard Microfinance Fund (BOMF); and responsAbility Investments AG.

Founded in 1953 in Eskişehir through the savings of farmers belonging to sugar beet cooperatives, Sekerbank has its headquarters in Istanbul and is listed on Borsa Istanbul. The bank operates 239 branches across 68 provinces in Türkiye.

Through the newly secured financing, Sekerbank will extend loans to rural MSMEs, businesses engaged in cross-border trade and services, and companies owned or managed by women. The funding will also support investment projects in sustainable agriculture and green transition initiatives.

Turkic Investment Fund Director General Ramil Babayev highlighted the significance of the transaction, describing it as the Fund's first financing operation in Türkiye.

"We are pleased to partner with Sekerbank. The bank's 73 years of banking experience and extensive outreach to micro, small and medium-sized enterprises operating in rural areas provide a solid foundation for this cooperation.

"Our participation in this transaction brings together two key pillars of the Fund's mandate: private-sector development through financial inclusion and regional economic integration.

"The Fund's financing is intended for Sekerbank customers who conduct cross-border trade and services with partners in our member states, expand their businesses or establish joint ventures.

"We thank Sekerbank for its commitment to these shared objectives and FMO for structuring the lending syndicate," Babayev said.

The Turkic Investment Fund is the first international financial institution jointly established by Turkic states to strengthen economic cooperation across the Turkic world, expand intra-regional trade and support sustainable development.

Established by a decision of the Council of Heads of State of the Organization of Turkic States (OTS), the Fund finances projects in priority areas, including the sustainable development and financial inclusion of MSMEs, physical and digital infrastructure, renewable energy, agriculture, transport and logistics, and cross-border trade.

To advance its mandate, the Fund actively uses co-financing and co-investment mechanisms in cooperation with leading multilateral development banks and development finance institutions.

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