EFSE provides Garanti BBVA with USD 22 million loan
Syndicated facility to boost access to finance for small businesses in regions affected by refugee influx in Turkey
Luxembourg, 6 January 2020 – The European Fund for Southeast Europe (EFSE) has provided a senior loan of USD 22 million under a USD 132.75 million syndicated facility to increase access to finance for micro and small enterprises (MSEs) across 22 provinces which are highly affected by refugee communities in Turkey.
Garanti BBVA is the second largest private banking group in Turkey and its subsidiary Garanti Leasing has been a reliable partner of EFSE since 2012. The loan from EFSE will play a crucial role in increasing access to finance to more than 3,000 local enterprises. The investment is in the form of a B loan under a USD 132.75 million syndicated facility lead by the International Finance Corporation (IFC), with the Green for Growth Fund and the Development Bank of Austria OeEB as parallel lenders.
EFSE Board Chairman Christoph Tiskens said: “MSEs are an important yet vulnerable driver of economic development in the region. Garanti BBVA’s commitment to this group makes it an optimal partner for EFSE in our joint aim to increase small businesses’ access to the financing they need to grow and thrive.”
An impact investment fund established in 2005, the European Fund for Southeast Europe (EFSE) aims to foster economic development and prosperity in Southeast Europe and the Eastern Neighbourhood Region by investing in the success of micro and small enterprises as well as improved living conditions for private households. As access to financial services is key to developing this segment, EFSE focuses on helping local financial sectors strengthen their ability to provide responsible financing for this target group. Alongside its investment activities through local partners, EFSE multiplies its impact through the EFSE Development Facility, which provides technical assistance, training, and other nonfinancial support to entrepreneurs and institutions.
EFSE was initiated by KfW Development Bank with the financial support of the German Federal Ministry for Economic Cooperation and Development (BMZ) and the European Commission. As the first public-private partnership of its kind, EFSE draws its capital from donor agencies, international financial institutions, and private institutional investors.
Finance in Motion GmbH, Germany, serves as EFSE’s advisor and Hauck & Aufhäuser Fund Services S.A., Luxembourg, acts as manager.
For more information on the European Fund for Southeast Europe, please visit: www.efse.lu
For more information on Finance in Motion, please visit: www.finance-in-motion.com
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