Finnfund invests in Şekerbank to expand financing for rural businesses and women entrepreneurs in Türkiye

Şekerbank has received a five-year syndicated loan of USD 170 million in total from seven international development finance institutions and impact investors, led by the Dutch Entrepreneurial Development Bank (FMO), to support its sustainable and inclusive banking activities.

As Türkiye prepares to host the COP31 Climate Summit, the secured funding will expand access to finance for rural SMEs, microenterprises and women entrepreneurs, while also supporting sustainable agriculture and investments in the green transition.

Led by FMO, the syndicated loan brought together Proparco, a subsidiary of the French Development Agency (AFD); the Development Bank of Austria (OeEB); the Finnish Fund for Industrial Cooperation (Finnfund); the Turkic Investment Fund (TIF); the BlueOrchard Microfinance Fund (BOMF); and ResponsAbility Investments in addition to FMO. The transaction marks the first time Finnfund and TIF have provided financing to a bank in Türkiye.

Şekerbank is recognised by international development finance institutions as a key partner in accessing farmers and SMEs, particularly in rural areas. Building on this expertise, the Bank has signed another major agreement for a five-year syndicated loan of USD 170 million, with seven international development finance institutions and impact investors .

The proceeds will be used to improve access to finance for SMEs and microenterprises operating in rural areas, promote sustainable agricultural practices, support women entrepreneurs and finance investments in the green transition.

Commenting on the new syndicated loan, Şekerbank CEO Aybala Şimşek Galpin said: “This valuable and meaningful funding, secured to deliver social and environmental impact, is a strong endorsement by international development finance institutions of Şekerbank’s 73 years of expertise in sustainable banking. Even by bringing banking services to districts with no bank branches, we continue our longstanding pioneering role in inclusive banking and we are proud to serve as a bridge between international financial institutions and Anatolia’s farmers and SMEs.

“The high calibre of the lenders participating in this syndication is particularly significant. The broad range of participants demonstrates the commitment of all the international financial institutions involved, to Türkiye’s sustainable development, and we are thankful to each of them” she added.

Şimşek Galpin underlined that the syndicated loan sets an example for financing inclusive green transition in this important year, as Türkiye prepares to host the COP31 Climate Summit and said: “This new funding will enable us to further accelerate our activities in sustainable agriculture, the green transition, women’s entrepreneurship and inclusive finance. In doing so, we will continue to contribute to rural development and to our country’s sustainable growth and climate goals.”

Frouke Hoekstra, Director Financial Institutions at FMO, said: “Şekerbank’s deep roots in local communities and its longstanding commitment to sustainable and inclusive banking make it a valued partner for FMO and the wider development finance community. We are proud to have led this syndication, bringing together a diverse group of international partners around a shared development objective. The broad participation reflects international confidence in Şekerbank’s ability to deliver meaningful impact and demonstrates what can be achieved when local expertise and international capital come together.”

“Şekerbank has a long track record of serving farmers, rural SMEs and other underserved customer segments across Türkiye. Through this financing, we can help expand access to finance for businesses and entrepreneurs that are essential for employment, food security and local economic development. We are pleased to establish our first partnership with a Turkish bank through this transaction and to support Şekerbank’s work in sustainable agriculture, financial inclusion and the green transition,” says Ulla-Maija Rantapuska, Senior Investment Manager at Finnfund.

More information:
Ulla-Maija Rantapuska, Associate Director, Financial Institutions, Finnfund
tel +358 41 536 5631, ulla-maija.rantapuska@finnfund.fi

Media contact:
Valpuri Mäkinen, Senior Communications and Marketing Manager, Finnfund
tel +358 50 384 2105, valpuri.makinen@finnfund.fi