By HANDAN SEMA CEYLAN
Ibrahim Oztop, CEO of the Turkey Development and Investment Bank (TKYB), said in a recent interview that the organization had set aside USD 1.7 bn in resources for 2020 and 2021, representing 31% of the resources provided by the bank over the last 15 years. “We provided USD 923 m of funds in 2020 and we expect to approach that amont in 2021,’’ Oztop said, stating that despite the pandemic the assets of the bank have reached TRY 24.9bn, a growth of 35% compared to the same period of last year. Oztop declared that the bank’s main indicators, such as return on equity and assets as well as the capital adequacy ratio, were above the sector average in the third quarter while non-performing loans were below average.
Last year, the industrial sector obtained Investment Incentive Certificates amounting TRY 251.1 m. “This figure shows a 30% increase from the previous year despite the pandemic,” Oztop noted. “Our industrial sector has an appetite for investment. We are eager to lend. These investments are less risky than new investments.” He underlined that they will continue to support manufacturing companies in priority sectors through long-termm, lira-denominated credits.
“We provided a total of USD 550m in funds from the Asian Infrastructure Investment Bank and the World Bank to alleviate the effects of coronavirus on economic activity and unemployment,” he said, adding that the TKYB expects negotiations on loans with the German development bank, KfW, to be finalized in the first half of this year. Oztop also mentioned that this year they are planning to initiate a project to increase registered employment funded by an agreement with the World Bank for EUR 316m.
He also commented on the agreements within the scope of “Investment Support” loans commissioned in June 2020, funded by the Central Bank of Turkey. The loans total TRY 18bn. “We contribute to the development of more than eight sectors in manufacturing, including chemicals, pharmaceuticals, machinery, electronics and automotive, which are prioritized under the Eleventh Development Plan,” he said.
TKYB provided TRY 9.5m for 295 investment projects in the energy sector. More than half of TKYB’s credit portfolio consists of renewable energy and energy efficiency projects, according to Oztop.
Oztop stated that he expects inflation to be down to single-digits by the end of 2021, due to the CBRT’s focus on price stability and its direct and predictable monetary policy. Consequently, TKYB will be able to meet its first Eurobond exports, thanks to lower costs, he added. He stressed the importance of transferring resources to startups and technology initiatives. “As a development bank, our priority has never been to make money out of money. My goal is to find low-cost resources. The emergence of Turkey will be possible by supporting entrepreneurs through angel investments. Holdings should do the same, too” said Oztop. Finally, Öztop announced that they will be adding two new funds to TKYB’s existing funds. “We established the Development Portfolio Management Inc. that will allow us to establish funds in various structures both in Turkey and abroad. We expect The High-Tech Fund to have funding totaling TRY 150-200 million. We aim to initiate the fund this year,” he stated.
TKYB IN FIGURES
2020
►TRY 18bn of “Investment Support” credits funded by the CBRT
►TRY 9.5m to 295 investment projects in the energy sector
►60+ agreements in 8+ sectors as part of “Investment Support” credits
►TRY 336m profit in a 9 month period
►TRY 24.9bn assets by September 2020
►TRY 19.6m total credit volume by September 2020
►USD 923m total resources disbursed
2021
►EUR 316m from the World Bank to increase registered employment
►USD 550m from Asian Infrastructure Investment Bank and World Bank to alleviate the effects of COVID-19
►TRY 400m in Regional Development Funds
►TRY 350m in Technology and Innovation Funds
►TRY 150m in High Tech Funds
