Investment & Fund Management

The European Investment Bank Group partnered with Turkiye Halk Bankasi A.S. (Halkbank) to provide a EUR 100 million facility aimed at supporting innovative and research-oriented small and medium-sized enterprises (SMEs) and mid-caps in Turkey. This initiative, backed by the European Union, addresses the specific challenge of limited access to finance for innovative companies, which often face high levels of uncertainty and risk.

The tailored solution involved structuring an EIB loan to Halkbank, enhanced by an EIF guarantee that provides credit-risk coverage under the Risk-Sharing Instrument (RSI). This innovative partnership, the first of its kind in Turkey, allows Halkbank to offer improved lending conditions, including lower collateral requirements and interest rates for loans to SMEs and small mid-caps. The facility also extends longer loan tenors and attractive pricing, making it easier for innovative companies to secure financing.

As a result of this initiative, it is expected that approximately 180 to 200 innovative companies will benefit from the EIB Group facility, leading to significant growth in private business and job creation. The RSI aims to encourage banks to provide loans of up to EUR 7.5 million to SMEs and small mid-caps engaged in research, development, or innovation, thereby increasing access to finance for these enterprises. This joint effort is part of a broader strategy to enhance innovation capacity within the private sector in Turkey.