FMO, the Dutch entrepreneurial development bank, has successfully arranged a USD 172 million equivalent syndicated facility for longstanding client Şekerbank, reinforcing the bank's ability to finance underserved businesses and support sustainable economic development across Türkiye.
The five-year senior unsecured multi-currency facility, comprising USD 88 million and EUR 75 million, follows the landmark USD 160 million syndicated transaction arranged by FMO for Şekerbank in 2024. Acting as Mandated Lead Arranger, FMO brought together a diverse group of development finance institutions and impact investors to support the transaction.
FMO committed USD 40 million to the facility, including USD 15 million from the SDG Loan Fund, while mobilizing additional capital from international partners. Participating A-lenders include Proparco, OeEB, Finnfund, and the Turkic Investment Fund (TIF). BlueOrchard and responsAbility joined the syndication through FMO's B-loan structure. Notably, the transaction marks the first investment by both Finnfund and the Turkic Investment Fund in a Turkish bank, broadening Şekerbank's international funding base and bringing new development finance partners to the country.
Additionally, the transaction demonstrates strong international confidence in Şekerbank's business model and development impact. With a mobilization ratio of nearly seven times FMO's own commitment, it highlights the catalytic role development finance institutions can play in attracting additional private and public capital to support sustainable development.
An FMO client since 2011, Şekerbank is a Tier II bank with a longstanding focus on serving SMEs and the agricultural sector. Through its extensive network of 239 branches, particularly in rural areas, the bank plays an important role in promoting financial inclusion and supporting underserved communities.
The new financing will further strengthen Şekerbank's capacity to provide funding to microenterprises, women-owned businesses, and rural and agricultural SMEs across Türkiye. In addition, the facility will support investments contributing to the country's green transition.
All proceeds, except OeEB's participation, will be earmarked for responsible investment-eligible financing activities. OeEB's commitment will be allocated exclusively to green financing in line with FMO's Green Asset List.
"This transaction builds on more than fifteen years of partnership between FMO and Şekerbank and reflects the confidence that development finance institutions and impact investors have in the bank's ability to deliver meaningful social and environmental impact. Through this facility, we are expanding access to finance for rural and agricultural SMEs, microenterprises and women-owned businesses, while supporting investments that contribute to Türkiye's green transition. We are particularly pleased to have mobilized a strong group of international partners and introduced new financiers to Şekerbank, further strengthening the bank's access to long-term funding and amplifying its development impact," said Frouke Hoekstra, Director Financial Institutions, FMO.
