Turkic Investment Fund commences its first financing in Türkiye

The Turkic Investment Fund (TIF) commits $10 million as part of a $170 million five-year financing arranged by the Dutch Entrepreneurial Development Bank (FMO) to expand access to finance for rural MSMEs (Micro, Small, and Medium Enterprises), support women entrepreneurs, and promote sustainable agriculture and green investments, Report informs, citing Azerbaijan's Economy Ministry.

The Turkic Investment Fund (TIF) has commenced its first financing in Türkiye, a founding Member State of the Fund, by joining the internationally syndicated financing of Şekerbank T.A.Ş. TIF's commitment forms part of a five-year senior facility arranged by FMO, supporting Şekerbank's inclusive and sustainable banking activities.

The syndicate brings together seven international development finance institutions and impact investors along with the Turkic Investment Fund: FMO; Proparco, the private sector financing arm of the French Development Agency (AFD) group; the Development Bank of the Republic of Austria (Oesterreichische Entwicklungsbank AG - OeEB); the Finnish Fund for Industrial Cooperation Ltd (Finnfund); the BlueOrchard Microfinance Fund (BOMF); and responsAbility Investments AG.

Şekerbank was founded in 1953 in Eskişehir with the savings of sugar-beet cooperative farmers. Headquartered in Istanbul and listed on Borsa Istanbul Exchange, the Bank operates 239 branches in 68 provinces. Şekerbank will on-lend the proceeds to small and medium-sized enterprises and microenterprises operating in rural areas and engaged in cross-border trade and services, to women-owned and women-led businesses, and to sustainable agriculture and green transition investments.

"With this facility, TIF marks its first financing transaction in Türkiye. We are pleased to partner with Şekerbank, whose 73-year banking experience and strong reach among rural MSMEs provide a solid foundation for this cooperation. Our participation brings together two central elements of TIF's mandate: private sector development with financial inclusion and regional economic integration. TIF's financing is earmarked for Şekerbank clients engaged in cross-border trade and services, business expansion and joint ventures with partners in our Member States. We thank Şekerbank for its commitment to these shared objectives and FMO for bringing this syndicate together," said Ramil Babayev, General Director of Turkic Investment Fund.

The Turkic Investment Fund (TIF) is the first international financial institution jointly established by the Turkic states, with a mandate to foster economic cooperation, increase intra-regional trade and support sustainable development across the Turkic world. Established by the decision of the Council of Heads of State of the Organization of Turkic States (OTS), TIF finances projects in priority sectors including sustainable MSME development and financial inclusion, physical and digital infrastructure, renewable energy, agriculture, transport and logistics, and cross-border trade. In delivering on its mandate, TIF actively deploys its financing through co-financing and co-investment structures alongside leading multilateral development banks and development finance institutions.