The European Fund for Southeast Europe (EFSE), which is advised by German firm Finance in Motion, recently disbursed a subordinated loan of approximately EUR 15 million (USD 19.4 million) to Turkish commercial bank Sekerbank. A subordinated loan ranks below other loans with regard to claims on assets or earnings should the bank fall into liquidation or bankruptcy. The loan has a ten-year maturity and will allow Sekerbank to boost its lending to micro- and small enterprises (MSEs) and agricultural producers. The European Commission provided endowment funds to EFSE for expanding its investment activities into Turkey.
Sekerbank focuses on financing micro-, small and medium-sized businesses, which currently make up 65 percent of its total loan portfolio, and provides services to 1.4 million customers through 272 branch offices.
As of March 2012, EFSE has an outstanding investment portfolio of EUR 723 million (USD 885 million). EFSE is managed by Oppenheim Asset Management of Luxembourg.
By Mihaela Grindeanu, Research Associate
About Sekerbank: ?ekerbank was founded by sugar beet growers’ cooperatives in Turkey in 1953. It serves small and medium-sized enterprises and agricultural producers through a community banking approach. Sekerbank provides services to 1.4 million customers through 272 branches and 1 overseas office. The subsidiaries of Sekerbank include Seker Yat?r?m, Seker Factoring, Seker Leasing, Sekerbank K?br?s Ltd. and Seker Finans.
About the 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 March 2012, EFSE has an outstanding investment portfolio of EUR 722.8 million (USD 885 million). As of 2012, EFSE holds a label from LuxFLAG, an organization that certifies that microfinance investment vehicles actually invest in the microfinance sector.
Sources and Additional Resources:
European Fund for Southeast Europe press release: “EFSE and ?ekerbank sign EUR 15 million loan agreement to support micro and small enterprises in Turkey”, http://www.efse.lu/Press-releases—Details—2012-09-11-EFSE-and—ekerbank-sign-EUR-15-million-loan-agreement-to-support-micro-and-small-enterprises-in-Turkey——_nav.52_siteid.134_entryid.454_dir._likecms.html
MicroCapital.org story, July 12, 2012: “MICROCAPITAL BRIEF: Deutsche Bank Secures Private Equity Investments of $64m in Microfinance Investment Vehicle European Fund for Southeast Europe (EFSE)”, https://www.microcapital.org/microcapital-brief-deutsche-bank-secures-private-equity-investments-of-64m-in-microfinance-investment-vehicle-european-fund-for-southeast-europe-efse/
MicroCapital.org story, July 10, 2012: “MICROCAPITAL BRIEF: IFC, EFSE Loan $49m total to Fibabanka AS of Turkey for Women-Owned Businesses”, https://www.microcapital.org/microcapital-brief-ifc-efse-loan-49m-total-to-fibabanka-as-of-turkey-for-women-owned-businesses/
MicroCapital Universe Profile: ?ekerbank, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=%C5%9Eekerbank
MicroCapital Universe Profile: The European Fund for Southeast Europe (EFSE), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Fund+for+Southeast+Europe+%28EFSE%29
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