CDP executes first TERRA transaction, extending €15 million to Şekerbank for Türkiye’s Agricultural SMEs

Summary

The transaction, the first structured by Cassa Depositi e Prestiti under the European guarantee programme TERRA – Transforming and Empowering Resilient and Responsible Agribusiness – strengthens support for local micro, small and medium-sized agricultural enterprises, with a focus on women’s entrepreneurship.

Facilitating access to credit for local agricultural SMEs and promoting gender-inclusive growth are the purposes of the €15 million financing provided by Cassa Depositi e Prestiti (CDP) to the Turkish private bank Şekerbank T.A.S..

The facility will contribute to expanding the bank’s lending portfolio in support of Turkish micro, small and medium-sized agricultural enterprises (Agri SMEs). Forty percent of the funds will be allocated to women-led businesses and to promoting women’s economic empowerment, in line with the international 2X Challenge initiative, promoted by CDP together with leading Development Finance Institutions.

This is the first operation implemented under the TERRA guarantee programme, promoted by CDP, the Food and Agriculture Organization of the United Nations and the European Union, with the objective of accelerating the transition towards sustainable agri-food systems by strengthening access to finance and protecting biodiversity.

Through this transaction, CDP further reinforces its role as Italy’s Financial Institution for International Cooperation, contributing to the sustainable growth of the agri-food sector and supporting local entrepreneurship in partner countries, in line with European development and inclusion priorities.

Giulio Dal Magro, Head of International Development Cooperation Financing, Funds and Blending at Cassa Depositi e Prestiti, stated: “This first transaction under the TERRA guarantee programme, in partnerhip with Şekerbank, represents a strategic step by Cassa Depositi e Prestiti to support the sustainable development of Türkiye’s agri-food sector. The operation strengthens the ability of agricultural enterprises, a key pillar of the local economy, to access critical financing for growth and resilience. A significant portion of the facility will be allocated to women-led businesses, in alignment with the 2X Challenge initiative supported by CDP, with the goal of driving inclusive and long-term development."

Aybala Şimşek Galpin, Şekerbank T.A.Ş. CEO, stated: “In line with our deep expertise in agricultural and rural inclusive banking spanning 73 years throughout Türkiye, we are so proud to be the first beneficiary bank worldwide under the TERRA programme, promoted by Cassa Depositi e Prestiti (CDP), the Food and Agriculture Organization of the United Nations and the European Union. This meaningful step is a clear indication of CDP’s commitment to supporting Türkiye’s sustainable development through the agricultural industry, SMEs and women-led businesses. This milestone also reinforces once again Şekerbank’s key role in International Financial Institutions reaching out to Türkiye’s farmers and SMEs, especially those located in off-center areas. This loan will pave the way for hundreds of micro and small businesses to have a more active presence in the local economy, thereby contributing to wide-spread and inclusive growth.”