Financial Capital
Financing SMEs, Wholesale Banking (APEX Banking), and Impact
SMEs (Small and Medium-sized Enterprises) constitute a
significant share of enterprises in developing countries,
including Türkiye, and play a critical role in economic growth
and employment opportunities. Recognizing their importance,
Development and Investment Bank of Türkiye supports the financing
needs of SMEs with high priority. The Bank’s main objective is to
contribute to Türkiye’s overall development and facilitate SMEs’
access to financial resources to help them grow, increase their
competitiveness, and promote inclusive economic growth.
The Bank supports SMEs through indirect means, including wholesale
banking (APEX Banking) loans and loan agreements with international
organizations focused on SME support. In addition, the Bank aims
to increase its support to SMEs through various funds under the
Türkiye Development Fund, such as the Technology and Innovation
Fund, the Regional Development Fund, the TKYB Capital Fund, the
Development Participation Venture Capital Fund, and the Innovative
and Advanced Technologies Participation Venture Capital Fund.
The main objective is to strengthen the support system for SMEs
and ensure their success in a dynamic economic environment.
To support the creation of employment opportunities, the Bank
provides financing for thematic investments of micro, small, and
medium-sized enterprises through direct loans and other financial
institutions such as commercial banks and leasing companies
through the APEX Banking mechanism.
As part of the wholesale banking activities launched in 2008,
nearly 1 billion USD worth of financing was provided to SMEs
through 5 commercial banks and 8 leasing companies in 11 APEX
programs carried out until the end of 2019. To support the
financing of SMEs, Development and Investment Bank of Türkiye
completed the design of 3 APEX loan programs in 2020, signed
contracts with the relevant resource institutions, prepared
project implementation guidelines, and brought them to the
disbursement stage
The Bank’s efforts to extend loans to SMEs through the APEX
method continued unabated in 2022. TKYB signed two important
projects in cooperation with the World Bank, which will provide
a total of 280 million EUR in 2023, and a project for the APEX
loan component of 30 million USD in cooperation with the Asian
Infrastructure Investment Bank.
World Bank Formal Employment Creation Project Wholesale Banking Component (Formal Employment Creation Project)
The World Bank approved the financial, environmental, and
social review and assessment reports prepared within the scope of
the selection of intermediary financial institutions for the EUR
190 million APEX loan component of the Registered Employment
Creation Project, which is envisaged to be disbursed through the
wholesale banking method, and signed Intermediary Financial
Institution (IFI) Agreements with six financial leasing companies.
A total of 70 million EUR was disbursed to institutions with
signed intermediary loan agreements. Work on evaluating and
reporting the sub-projects of financial leasing companies for
the loans disbursed continues.
In 2023, a disbursement of EUR 120 million is foreseen. The budget
of 650,000 EUR allocated for capacity-building training and
consultancy services for Development and Investment Bank of Türkiye,
intermediary institutions, and beneficiary companies within the
scope of the loan is expected to be used mainly in 2023.
Within the scope of the APEX component of the project, the
consultancy service procurement process for the company that will
provide consultancy for the Environmental and Social assessment
phase is ongoing. In the first quarter of 2023, it is planned to
start working with the consultant company.
World Bank Emergency Firm Support Project
To meet the working capital and investment needs of SMEs
affected by the COVID-19 pandemic, the entire USD 250 million
Emergency Firm Support Project provided by the World Bank is being
disbursed through wholesale banking. Contracts were signed with
three financial leasing companies and two banks approved by the
World Bank, and a total of USD 90 million was disbursed to
intermediary institutions.
In 2023, efforts to assess and report on intermediary institutions’
sub-loans will continue, and a total of USD 160 million is planned
to be disbursed.
The procurement of consultancy services to support the Environmental
and Social Assessment process within the scope of the Project is
ongoing. Consultancy service terms of reference and a list of
potential firms have been prepared. The procurement process is
targeted to be completed in the first quarter of 2023.
Asian Infrastructure Investment Bank COVID-19 Project Wholesale Banking Component
An Intermediary Financial Institution (IFI) Agreement was signed
with a commercial bank for the 30 million USD APEX loan component of
the 300 million USD COVID-19 Project with the Asian Infrastructure
Investment Bank, and the full amount was transferred. The review,
approval, and reporting processes of the sub-loans extended by the
intermediary bank are planned to be completed in the first half of 2023.
The procurement of consultancy services to support the environmental
and social assessment process within the scope of the project is
ongoing in conjunction with the World Bank Emergency Company Support
Project. Consultancy service terms of reference and a list of potential
firms have been prepared. The procurement process is targeted to be
completed in the first quarter of 2023.