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.

About the EIF

The European Investment Fund (EIF) is part of the European Investment Bank group. Its central mission is to support Europe's micro, small and medium-sized businesses (SMEs) by helping them to access finance. EIF designs and develops venture and growth capital, guarantees and microfinance instruments which specifically target this market segment. In this role, EIF fosters EU objectives in support of innovation, research and development, entrepreneurship, growth, and employment.

About TSKB

Established in 1950, TSKB provides support for sustainable economic development of Turkey. TSKB offers its clients a wide array of products and services in corporate banking, investment banking and advisory business lines.

TSKB operates in continuous cooperation with leading participants of the global markets and supranational financial institutions. TSKB provides long term funding for medium and large scale investment projects by creating corporate strategies focusing on Turkey’s economic potential. TSKB also provides private advisory services tailored for the client’s needs. Having integrated the economic, social and environmental dimensions of its globally accepted sustainability practices, TSKB supports the business world for the transition to a low carbon economy and more efficient production level.

TSKB conducts its business through its head office in Istanbul and branches in Ankara and İzmir.

SMEs wishing to apply for finance under the InnovFin programme can directly contact TSKB, at the following website: www.tskb.com.tr and e-mail address: krediler@tskb.com.tr

About InnovFin

"InnovFin– EU Finance for Innovators", the new generation of EU financial instruments and advisory services was developed under Horizon 2020 to help innovative firms access finance more easily. "InnovFin – EU Finance for Innovators" will help to inject up to EUR 48 bn in investments in Research and Innovation across Europe.

About Horizon2020

On 1 January 2014, the European Union launched a new research and innovation funding programme called Horizon 2020. Over the next seven years almost EUR 80 bn will be invested in research and innovation projects to support Europe’s economic competitiveness and extend the frontiers of human knowledge. The EU research budget is focused mainly on improving everyday life in areas like health, the environment, transport, food and energy. Research partnerships with the pharmaceutical, aerospace, car and electronics industries also encourage private-sector investment in support of future growth and high-skilled job creation.

Press contacts:

EIF: David Yormesor
Tel.: +352 24 85 81 346, e-mail: d.yormesor@eif.org

TSKB: Canan Coşkun
Tel.: +90 212 334 5219, e-mail: eguzc@tskb.com.tr

European Commission: Annika Breidthardt
Tel.: +322 295 6153, e-mail: Annika.breidthardt@ec.europa.eu