TSKB’s support to Turkish economy reached TL 36 Billion as of the end of 2019

TSKB’s support to Turkish economy reached TL 36 Billion as of the end of 2019 Türkiye Sınai Kalkınma Bankası A.Ş. (TSKB) announced its 2019 year-end financial results. TSKB’s total assets has increased to TL 42 billion while its support to Turkish economy via loans reached TL 36 billion. TSKB CEO Suat Ince, in his statement related to 2019YE financial results, he told “We continued, to provide versatile contribution to Turkey’s development and growth, to improve the value we offer to the national economy, along with our corporate lending, investment banking and advisory services, throughout the year. As in our 70-year history, in 2020 we will continue to support Turkey’s economy, real sector and our stakeholders in all conditions with qualified financing and our wide range of advisory services.”

Türkiye Sınai Kalkınma Bankası A.Ş. (TSKB) disclosed its 2019 year-end financial results. Focusing on maintaining its solid balance sheet structure while sustaining its support to the country’s economy, TSKB’s total assets reached TL 42 billion with an increase of 10 percent compared to previous year.

With total cash and non-cash loans reaching TL 36 billion, TSKB continued financing Turkey’s development. The gross banking income has been TL 1.3 billion, whereas the net profit after provisions and tax reads as TL 702 million. In the same period, the shareholders’ equity of TSKB surged up by 20 % to TL 5.7 billion. The capital adequacy ratio reached up to 17.8 percent which is well above legal requirements.

“We continued our lending activities within the scope of our commitments and with a strong risk assessment approach specific to our bank.”

After emphasizing that TSKB continued to provide versatile contribution to Turkey’s development and growth, to improve the value TSKB offers to the national economy, along with the corporate lending, investment banking and advisory services, throughout the year TSKB CEO Suat Ince said: "We continued our lending activities within the scope of our commitments and with a strong risk assessment approach specific to our bank. Sustainable finance themed projects such as renewable energy, energy and resource efficiency and inclusiveness weighed on new loan disbursements in 2019.”

In 2019, TSKB became one of the Founding Signatories of the ‘Principles for Responsible Banking’ developed by the United Nations Environment Programme Finance Initiative (UNEP FI). TSKB CEO Suat Ince says that TSKB has a pioneering role in this area as a bank that has been adopting sustainability principles for nearly 20 years.

Stating that they signed a total of 475 million USD resource agreement last year, mainly on medium- and long-term resources, Ince gave the following information: “In July 2019, TSKB closed 367-Day dual tranche term syndicated loan facility worth of USD 177 million. The syndicated loan was supported by a strong group of 12 banks from 12 different countries and regions, covering Europe, North America, Asia and the Middle East, including both TSKB’s core relationship banks and new participants.

In September 2019, we obtained USD 200 million loan from the China Development Bank(CDB). The loan is the first transaction to be provided to Turkey by the CDB under the guarantee of the Ministry of Treasury and Finance. With the loan provided under the Belt and Road Initiative carried out by the People's Republic of China, which marks the first long-term loan to be provided by CDB in Turkey, TSKB will support projects in manufacturing industry, SMEs, energy, infrastructure, health and education sectors in Turkey. The last but not the least, in November 2019 we obtained EUR 85 million loan from French Development Agency (Agence Française de Développement – AFD). The loan is extended for the purpose of financing the investments of the companies in Turkey which support gender equality and women's employment in working environment.

“TSKB will continue to create alternative sources of financing”

In December 2019, TSKB arranged the first issuance of Lease Certificates (Sukuk) in the natural gas distribution sector in Turkey. Providing information about the issuance TSKB CEO Suat Ince said, “We are pleased to provide long-term funding for our client through capital markets by means of arranging the issuance of the first Sukuk in the natural gas distribution sector. In 2020, in order to provide financing for our clients-especially real sector companies - through the capital markets, TSKB will continue to create alternative sources of financing through the issuance of Sukuk, in addition to bond issuances.”

Referring to the transformation that TSKB has experienced within the scope of consultancy targets, Ince continued: “Last year, we continued to strengthen our team with employees that have professional consulting experience in different sectors and fields. As TSKB, we have determined our products and services in detail, that we will make a difference with our current competences. Now, our goal is to provide the knowledge and the experience we have in economic, sectoral and technical issues for the sustainable development of the Turkish public and private sector.

TSKB CEO Suat Ince, in his statement related to TSKB’s Eurobond issuance he told: “We issued 2020’s first Eurobond out of Turkey. TSKB’s 400 million-dollar 5-year Eurobond transaction attracted 10 times of a demand, globally. We received orders from approximately 300 reputable accounts, which 45% of them are new names for TSKB. The strong final order is the sign of trust in Turkey and TSKB. We believe that 2020 will be a better year for Turkey and Turkish financial sector.”