Sekerbank T.A.S.
Status: Approved investmentWhy disclosure?
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Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
Sekerbank is a rural- and agri-oriented high-impact financial institution in Turkey and an existing partner of FMO. Established in 1953 as a sugar beet cooperative, Sekerbank is nowadays a bank with an extensive branch network in the Anatolian rural areas in Turkey. The bank remains a key player in the Turkish agricultural supply chain. The bank has a relatively small market share. Still, Sekerbank is an essential player in rural areas with a solid reputation among farmers as well as rural retail and small- and medium-sized enterprise (SME) clients. Sustainability is at the heart of the Bank’s operations, as is demonstrated by its focus on a.o. sustainable agriculture, energy efficiency, and inclusive finance for women.
What is our funding objective?
FMO will provide a multi-currency senior unsecured A/B loan of up to USD 160 mln as the lead arranger. FMO has contributed EUR 30 mln directly, while the remaining amount has been mobilized through esteemed partners: USD 30 mln from the Japan International Cooperation Agency (JICA), marking their first investment in Turkey, EUR 30 mln from Proparco, EUR 25 mln from BlueOrchard, EUR 20 mln from the European Fund for Southeast Europe (EFSE), and USD 15 mln from ILX.
Why do we fund this investment?
In Turkey, the agricultural sector is vital because it significantly contributes to GDP, job creation, and export opportunities. By stimulating the rural areas, Sekerbank, FMO, and the remainder of the lenders contribute to reducing the sizeable regional income inequalities within Turkey. FMO has introduced Sekerbank to new financiers, expanding its funding base and strengthening its financial network. Additionally, Sekerbank has been a lasting client of FMO since 2011, and this deal has strengthened the relationship further. Use of proceeds will be directed towards micro-enterprises, women-owned businesses, and rural/agricultural SMEs. The loan will be applicable for a 100% Reduced Inequalities (RI) label.
What is the Environmental and Social categorization rationale?
Sekerbank is an existing client of FMO. It has been categorized as Category FI-A per FMO’s Sustainability Policy and the EDFI Harmonized Environmental and Social Standards. The clients in the financial institution's (FI) portfolio are active in sectors that potentially have adverse and significant environmental and social (E&S) risks and impacts, such as agriculture, manufacturing, and construction. Sekerbank will be required to apply the EDFI Exclusion List, Turkish national E&S laws and regulations, and the IFC Performance Standards (PS) Framework for the identified Triggered Transactions. Sekerbank has a functioning E&S management system (ESMS), with fully dedicated E&S specialists responsible for integrating E&S analysis into the credit decision-making process. An E&S action plan (ESAP) has been implemented to further enhance the FI’s E&S policy and procedures.
More investments
| Date | Total FMO financing |
|---|---|
| 12/13/2021 | EUR 15.00 MLN |
| 12/29/2020 | TRY 192.00 MLN |
| 12/29/2020 | EUR 20.00 MLN |
| 12/29/2020 | EUR 16.50 MLN |
- Website customer/investment
- http://www.sekerbank.com.tr
- Region
- Europe & Central Asia
- Country
- Türkiye
- Sector
- Financial Institutions
- Publication date
- 11/18/2024
- Effective date
- 11/5/2024
- Total FMO financing
- EUR 30.00 MLN
- Funding
- FMO NV
-
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - A