TURKEY —The European Bank for Reconstruction and Development (EBRD) is committing €100 million to senior-rated notes issued under Garanti BBVA’s diversified payment rights (DPR) financing programme, establishing a dedicated funding channel for small businesses led by women and younger entrepreneurs in Türkiye. The investment is divided equally between two initiatives: €50 million under the Türkiye Women in Business II (TurWiB II) programme and €50 million under the Türkiye Youth in Business (TurYiB) programme.
Under the women-focused component, Garanti BBVA will provide financing to women-owned or women-led small and medium-sized enterprises, including businesses operating outside Ankara, Istanbul and Izmir, as well as companies seeking credit for the first time. Eligible enterprises may also receive non-financial assistance, including mentoring, training, business advisory services and networking opportunities. Growth-stage and technology-oriented businesses may be among the potential beneficiaries.
The youth-focused allocation will support micro, small and medium-sized enterprises managed or majority-owned by people below 35 years of age. The financing will also benefit from first-loss risk coverage provided by the Türkiye Credit Guarantee Fund and underwritten by the Turkish Treasury, helping mitigate credit risk associated with lending to eligible businesses.
The transaction uses a financing structure backed by current and future foreign-currency payment orders generated through Garanti BBVA’s payment operations. This mechanism provides longer-term funding while diversifying the bank’s wholesale funding sources. For the lender, the arrangement creates additional capacity to extend credit to targeted business segments without relying exclusively on conventional funding channels.
The investment addresses financing constraints faced by smaller enterprises, particularly businesses with limited borrowing histories and entrepreneurs operating beyond Türkiye’s largest commercial centres. Access to longer-tenor credit and business development support can help eligible companies finance expansion, strengthen operations and pursue technology adoption. The combination of funding and risk-sharing arrangements is also intended to facilitate lending to businesses that may otherwise face tighter credit conditions.
Garanti BBVA is a Turkish banking institution and an established EBRD partner in the country. The transaction marks its first financing under both TurWiB II and TurYiB, following its participation in the earlier phase of the EBRD’s women-focused business programme. The EBRD is an international development bank investing in private-sector growth and economic development across its regions of operation; it has committed more than €26 billion in Türkiye since 2009. For banks, development finance institutions and investors, the transaction demonstrates how structured funding, targeted credit programmes and public-sector-backed risk protection can be combined to widen finance access for underserved business groups.
