FINCHANNEL

The FINANCIAL — The European Bank for Reconstruction and Development (EBRD) is giving a financial boost to one of Turkey’s fastest-growing medical equipment producers, Asset Medikal Tasarim AS, following burgeoning demand triggered by the coronavirus outbreak. The EBRD is joining forces with Turkiye Sinai Kalkinma Bankasi (TSKB) – the Industrial Development Bank of Turkey – by jointly providing a €1 million working capital loan to help the company expand its production.

According to EBRD, Asset Medikal is producing innovative needle-free valves, which prevent healthcare workers from accidental needlestick injuries. The company’s products are sold in 30 countries across 5 continents. Covid-19 has significantly increased the need for transfusions in hospitals, triggering a jump in demand for Asset Medikal’s products.

The loan, provided equally between the EBRD and TSKB, will enable Asset Medikal to increase production by supporting its working capital needs. The company will also take steps to improve social sustainability by raising awareness and increasing gender equality. Furthermore, Asset Medikal will aim to maintain social benefits in line with the healthcare industry.

The EBRD and TSKB are working together to improve and simplify access to finance for small and medium-sized enterprises (SMEs) across Turkey. Under a risk-sharing agreement, the two lenders provide equal loans to eligible businesses that are identified jointly. Clients can use the loans to finance working capital, capital expenditure or refinance existing loans.

The EBRD is a major investor in Turkey. To date, it has invested €12.4 billion through more than 300 projects in various sectors of the country’s economy, with almost all investment in the private sector. The EBRD’s €7 billion Turkey portfolio is the largest among the 38 economies where the Bank invests.