Istanbul, Turkey, June 13, 2018—IFC,
a member of the World Bank Group, has invested $75 million in a bond issue
by Turkey’s Garanti Bank—the first private sector gender bond in emerging
markets dedicated to financing enterprises and companies owned or managed
by women. The investment is in partnership with the Women Entrepreneurs
Opportunity Facility (WEOF), launched by IFC through its Banking on Women
Program, and Goldman Sachs’ 10,000 Women initiative.
The new bond, has a six-year term maturity, and is issued in line with
IFC’s social bonds criteria. All the financing raised though the issue
is earmarked for on-lending to Garanti Bank’s women-owned small businesses.
The issue is expected to triple the number of loans to these clients over
the next five years.
In Turkey, nearly 30 percent fewer women than men have access to financial
services. Only about 9 percent of small and medium enterprises are owned
by women and these face a credit gap of $5 billion, constraining growth.
The gender bond, a new financing structure both in the Turkish market and
international capital markets, will help create funding to support these
women entrepreneurs and business owners.
“We are delighted to be able to introduce this new funding instrument
to the Turkish market to obtain fresh funding for women entrepreneurs through
this pioneering bond issue,” said Garanti Bank CEO Fuat Erbil. “We
have been offering products and services
for women entrepreneurs since 2006, including over 5 billion Turkish liras
in financial support, to help them grow and, in turn, drive broader economic
The collaboration is part of IFC’s strategy in Turkey to boost financial
inclusion, especially for women entrepreneurs. Over the last seven years,
IFC has worked with Turkish banks to provide $61 million in financing for
women entrepreneurs under its Banking on Women program, launched a program
to support women in supply chains, and engaged in efforts to increase the
number of women on company boards.
"Strengthening women’s participation in Turkey’s economy helps to
unleash untapped potential for employment and economic growth. Our partnership
with Garanti Group in Turkey and the region ensures that smaller companies
and women entrepreneurs will continue to have access to the funds they
need to grow and create jobs" said Wiebke Schloemer, IFC Regional
Director for Europe and Central Asia
The WEOF is a first-of-its-kind facility dedicated to expanding access
to capital for 100,000 women entrepreneurs globally. IFC’s Banking on
Women Program has committed 64 investments globally worth $1.71 billion,
and advised on 39 projects since its launch in 2010. Of these, the WEOF
has supported over $1 billion in commitments to financial institutions
in 26 countries.
“This exciting deal allows Garanti Bank to access an innovative financing
tool to promote gender based financing and could be a model that is replicated
in other markets,” said Cristina Shapiro, Head of 10,000 Women.
“Goldman Sachs research shows that closing the credit gap for women-owned
SMEs in emerging markets could push income per capita an average of 12
percent higher by 2030. Women entrepreneurs have real potential to impact
Turkey’s future growth.”
IFC and Garanti Bank previously cooperated to spur lending to women in
Romania. Over the past six years, IFC has committed over 100 million euros
to Garanti Group Romania, including banking and leasing services, to help
Turkey is IFC’s second-largest country exposure globally with a $5 billion
committed portfolio, and IFC’s office in Istanbul, established 30 years
ago, is one of its largest outside Washington, D.C. providing services
across regions. Since its first investment over half a century ago, IFC
has supported Turkey’s private sector with over $15 billion in investments
in more than 350 projects.
IFC—a sister organization of the World Bank and member of the World Bank
Group—is the largest global development institution focused on the private
sector in emerging markets. We work with more than 2,000 businesses worldwide,
using our capital, expertise, and influence to create markets and opportunities
in the toughest areas of the world. In FY17, we delivered a record $19.3
billion in long-term financing for developing countries, leveraging the
power of the private sector to help end poverty and boost shared prosperity.
For more information, visit www.ifc.org
About Garanti Bank
Established in 1946, Garanti Bank is Turkey’s second largest private bank
with consolidated assets of US$ 91.2 billion as of March 31, 2018. Garanti
is an integrated financial services group operating in every segment of
the banking sector including corporate, commercial, SME, payment systems,
retail, private and investment banking together with its subsidiaries in
pension and life insurance, leasing, factoring, brokerage and asset management,
besides international subsidiaries in the Netherlands and Romania.
About Goldman Sachs 10,000 Women
Goldman Sachs 10,000 Women is an initiative to foster economic growth
by providing women entrepreneurs around the world with a business and management
education and access to capital. The initiative has reached women from
across 56 countries through a network of 100 academic, nonprofit, and bank
partners. In partnership with the International Finance Corporation (IFC),
Goldman Sachs 10,000 Women launched the first of its kind global
finance facility in 2014 to enable access to capital to more women entrepreneurs.
And now, in its tenth year, the 10,000 Women curriculum is available
online through Coursera, creating access to a business education in more
corners of the world.