In their third joint transaction, the European Bank for Reconstruction and Development (EBRD) and the Industrial Development Bank of Turkey (TSKB) are providing a €6 million loan to the Turkish metal producer Sarbak Metal Ticaret ve Sanayi Anonim Sirketi.
The company is engaged in the production of brass and fabricated brass intermediate products such rods, bars, ingots and billets that are mainly used in the construction and automotive industries.
Divided 50:50 between the two lenders, the financing will be used to fund the upcoming working capital needs of Sarbak Metal.
The EBRD funding will help make the company more resilient and competitive on the Turkish market and abroad. It also underlines the EBRD’s continuing commitment to investing in the Turkish economy.
The financing marks the third investment under a joint programme between the EBRD and TSKB set up in 2016 to improve and simplify access to finance for small and medium-sized enterprises and mid-caps across Turkey.
Sarbak was established in 1976 and since then has grown into Turkey’s largest manufacturer of brass bars, profiles and ingots. Forty per cent of its output is exported, mainly to the European Union, the Middle East and North Africa countries and Australia.
The EBRD is a major investor in Turkey. Since 2009 it has invested nearly €11 billion in various sectors of the Turkish economy, with almost all investment in the private sector. Half of the Bank’s portfolio in Turkey constitutes investments that promote sustainable energy and resource use.