Alternatifbank A.S. (ABank), a private commercial bank in Turkey, has entered into a loan agreement with German development finance institution Deutsche Investitions-und Entwicklungsgesellschaft GmbH (DEG) and the European Fund for Southeast Europe (EFSE), a microfinance investment fund incorporated in Luxembourg, to receive EUR 30 million (USD 38.7 million) to boost credit availability for micro-, small and medium-sized enterprises (MSMEs) in Turkey [1]. Under the agreement, DEG will provide EUR 20 million (USD 25.8 million) of the principal, and EFSE will provide EUR 10 million (USD 12.9 million). This loan marks the first investment by EFSE in Turkey and was made possible with funding from the European Commission via the European Investment Fund (EIF), a public-private partnership that supports financial institutions in Europe.
As of 2011, ABank reports having 63 branches, particularly in industrial centers. As of 2010, ABank is reported to have total assets of TRY 3.8 billion (approximately USD 2 billion), return on assets (ROA) of 0.78 percent and return on equity (ROE) of 6.52 percent [2]. As of December 2010, DEG reported total assets of EUR 3.88 billion (approximately USD 5 billion) and net profit of EUR 270 million (approximately USD 349 million). As of June 30, 2011, EFSE has an outstanding investment portfolio of EUR 676 million (approximately USD 874 million). As of December 2010, EIF reported total assets of EUR 1.2 billion (USD 1.6 billion).
By Nisha Koul, Research Associate
About Alternatifbank A.S. (ABank): Alternatifbank A.S. (ABank), founded in 1991, is a private commercial bank in Turkey. ABank is controlled by Anadolu Group, a Turkish conglomerate with interests in the beverage, automotive, financial services, retail and energy sectors. The Anadolu Group owns 96 percent of ABank, and the remaining shares are publicly quoted on the Istanbul Stock Exchange. As of 2011, ABank operated through a network of 63 branches in Turkey, particularly in industrial centers. As of 2010, ABank is reported to have total assets of TRY 3.8 billion (approximately USD 2 billion), return on assets (ROA) of 0.78 percent and return on equity (ROE) of 6.52 percent.
About Deutsche Investitions-und Entwicklungsgesellschaft GmbH (DEG): Deutsche Investitions-und Entwicklungsgesellschaft GmbH (DEG), a member of KfW Bankengruppe, is a German development finance institution offering long-term project and company financing. DEG provides assistance to all sectors, with particular attention to agribusiness, financial institutions and infrastructure and processing industries. As of December 2010, DEG reported total assets of EUR 3.88 billion (approximately USD 5 billion) and net profit of EUR 270 million (approximately USD 349 million).
About European Fund for Southeast Europe (EFSE): Established in 2005, the European Fund for Southeast Europe aims to foster economic development in southeastern Europe and parts of Central Asia by supporting the provision of financial services to low-income households and micro- and small enterprises via local financial institutions. EFSE was initiated by KfW Entwicklungsbank, a German development bank, with support from the German Federal Ministry for Economic Cooperation and Development (BMZ in German) and the European Commission. EFSE is privately managed, with Oppenheim Asset Management Services of Luxembourg acting as fund manager and Finance in Motion GmbH of Germany acting as fund advisor. As of June 30, 2011, EFSE has an outstanding investment portfolio of EUR 676 million (approximately USD 874 million). LuxFLAG, an organization that certifies that microfinance investment vehicles actually invest in the microfinance sector, renewed EFSE’s label as of 2011.
About European Investment Fund (EIF): The European Investment Fund (EIF) is a provider of risk finance to organizations that lend to small and medium-sized enterprises (SME) in Europe. The fund is a public-private partnership whose shareholding structure includes the European Union’s European Investment Bank; the European Union as represented by the European Commission; and 29 financial institutions from European Union member states plus Turkey and Croatia. EIF is a member of the EIB Group, the parent organization of the European Investment Bank. As of December 2010, EIF reported total assets of EUR 1.2 billion (USD 1.6 billion).
Sources and Additional Resources:
[1] Press Release submitted to MicroCapital, December 2011.
[2] Internet Securities, Inc, Alternatifbank A.S. (ABank), http://www.securities.com/Public/company-profile/TR/ALTERNATIFBANK_en_1550050.html
MicroCapital.org story, December 6, 2011, “MICROCAPITAL BRIEF: European Fund for Southeast Europe Lends $13m to Intesa Sanpaolo Banka of Bosnia and Herzegovina,” https://www.microcapital.org/microcapital-brief-european-fund-for-southeast-europe-lends-13-m-to-intesa-sanpaolo-banka-of-bosnia-and-herzegovina/
MicroCapital.org story, October 7, 2011, “MICROCAPITAL BRIEF: Deutsche Investitions-und Entwicklungsgesellschaft (DEG), Oesterreichische Entwicklungsbank (OeEB) to Invest $10m in Inecobank to Develop Small and Medium Enterprises in Armenia,” https://www.microcapital.org/microcapital-brief-deutsche-investitions-und-entwicklungsgesellschaft-deg-oesterreichische-entwicklungsbank-oeeb-to-invest-10m-in-inecobank-to-develop-small-and-medium-enterprises-in-armenia/
MicroCapital Universe Profile: Alternatifbank A.S. (ABank), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Alternatifbank+A.%C5%9E.
MicroCapital Universe Profile: Deutsche Investitions-und Entwicklungsgesellschaft GmbH (DEG), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Deutsche+Investitions-und+Entwicklungsgesellschaft+GmbH+%28DEG%29
MicroCapital Universe Profile: European Fund for Southeast Europe (EFSE), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Fund+for+Southeast+Europe+%28EFSE%29
MicroCapital Universe Profile: European Investment Fund (EIF), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Investment+Fund
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
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