Istanbul, Turkey, July 26, 2011—IFC,
a member of the World Bank Group, is partnering with FMO, the development
bank of the Netherlands, and UniCredit CIB London to support Turkey’s
Sekerbank in its groundbreaking issuance of covered bonds which will support
lending to small and medium enterprises.
Sekerbank is the first bank in Turkey to issue covered bonds under legislation
enacted in 2009. IFC is investing up to $25 million equivalent in Turkish
lira in the first covered bond issuance, alongside investments from UniCredit
CIB London (EUR50 million equivalent), and FMO (EUR25 million equivalent).
Covered bonds are debt securities backed by a pool of designated assets.
“Sekerbank is a key partner for IFC in addressing the financing needs
of Turkish small and medium enterprises, which are crucial for economic
development and job creation,” said Sybile Lazar, IFC Associate Director
for Turkey. “The transaction demonstrates the significant role IFC can
play in helping mobilize resources for long-term financing and in developing
new asset classes that can contribute to the development of capital markets
The first covered bond issuance in Turkey will launch this asset class
in Turkey and serve as a model for replication in other countries in Europe,
and the Middle East and North Africa. The groundbreaking transaction will
help provide banks an alternative source of funding and will contribute
to job creation and social development in Turkey as the recipients of covered
bond financing will be primarily micro, small, and medium enterprises in
rural and frontier regions of Turkey.
Covered bonds are a highly developed asset class in many advanced capital
markets, with a volume outstanding of EUR2.5 trillion in 2010, largely
concentrated in Denmark, Germany, France, and Spain. Sekerbank’s covered
bond will be one of the first emerging market covered bonds to use micro,
small, and medium enterprise loans as the asset pool.
IFC, a member of the World Bank Group, is the largest global development
institution focused exclusively on the private sector. We help developing
countries achieve sustainable growth by financing investment, providing
advisory services to businesses and governments, and mobilizing capital
in the international financial markets. In fiscal 2011, amid economic uncertainty
across the globe, we helped our clients create jobs, strengthen environmental
performance, and contribute to their local communities—all while driving
our investments to an all-time high of nearly $19 billion. For more information,