Sekerbank SME Asset Guaranteed Bond

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Translated version of this PSD: Turkish The EBRD is considering an investment in TRY denominated SME asset guaranteed bond programme issued by SekerBank, Turkey. The programme size is up to TRY 800 million (EUR 312 million equivalent) rated A3 by Moodys and is the first ever covered bond issued in Turkey. The Bank’s investment will be used to support the bank’s SME lending operations including in the energy efficiency sector which finances environmentally friendly investments and improvements for SMEs outside of the three main cities (Istanbul, Ankara and Izmir). The positive transition impact stems from providing a source of funding that Sekerbank can use to lend in local currency to SMEs including in the energy efficiency sector in the regions outside of the main three cities. EBRD’s investment in the bond programme will help anchor the first covered bond issue in Turkey and build familiarity with the structure which could have a strong capital markets demonstration effect and mobilise an investor base not previously engaged with the Turkish banking sector. Sekerbank is 14th largest bank in Turkey, headquartered in Istanbul with a regional network of 266 branches. Sekerbank has consolidated assets of EUR 5.6 billion as of end-2010 and a market share of around 2.2% and 2% in loans and deposits respectively. Sekerbank is owned by Sekerbank Voluntary Pension Fund (33.98%), BTA Securities (33.98%), freefloating shares (31.96%), Konya Şeker Sanayi ve Tic aret AŞ,(6.62%) and IFC (3%). SekerBank is rated Ba3 by Moody’s and B+ by Fitch. Up to TRY 60 million (EUR 24 million equivalent) investment in 1- year and 3-year tranches. Other investors include IFC, FMO and UniCredit bank AG (programme arranger). TRY 800 million (EUR 312 million equivalent) Categorised FI. SekerBank will be required to comply with the EBRD's Performance Requirements for FIs (specifically, PR2 and 9) and submit Annual Environmental and Social Reports to the EBRD. SekerBank will be required to implement EBRD's Environmental and Social Procedures for Small and Micro Loans as outlined in the e-manual. None Şekerbank Media Relations : Mr. Aybala Simsek, Head of PR Tel: +90 212 319 7115 e-mail: Aybala.Simsek@sekerbank.com.tr