First Turkish InnovFin SME deal as EIF and TSKB sign agreement for innovative businesses

The European Investment Fund (EIF) and Türkiye Sınai Kalkınma Bankası (TSKB), have signed the first InnovFin agreement for SMEs as well as small mid-caps in Turkey under InnovFin – EU finance for innovators, an initiative supported by the European Commission.

The InnovFin agreement will enable TSKB to provide loans to innovative companies in Turkey over the next 2 years with the support of a guarantee provided by EIF and backed under Horizon 2020, the EU Framework Programme for Research and Innovation. The EU support for innovative Turkish companies is expected to generate a portfolio of EUR 20 million of bank loans.

Commenting on the signature, EIF’s Chief Executive, Pier Luigi Gilibert said: “I am pleased to be signing the first InnovFin SME Guarantee agreement in Turkey. TSKB has ample experience in working with international finance institutions and we are confident that they will be able to target innovative companies in Turkey with this EU support”.

Carlos Moedas, European Commissioner for Research, Science and Innovation, said: "Turkey has a long association with EU research and innovation programmes. The InnovFin SME Guarantee deal signed today under Horizon 2020 will support Turkey’s dynamic economy by opening up new financial opportunities for innovative companies."

Commenting on the InnovFin SME Guarantee agreement, CEO of TSKB, Özcan Türkakın said: “SMEs play a very important role in development of a country. Every step that SMEs take creates more employment, provides competitive advantage, and expands our economy. While we are increasing our support to innovative firms with InnovFin SME Guarantee mechanism, we are pleased to enhance our productive relationship with EIF through this initiative which will contribute to the development of Turkish economy.”

The aim of the InnovFin SME Guarantee is to encourage banks or other financial institutions to lend to SMEs and small mid-caps (firms with fewer than 500 employees) in need of investment and/or operating capital to finance research, development and innovation activities, with EU financial support. Financial institutions are being selected by the EIF following a call for expression of interest for financial intermediaries across Europe.