Azerbaijan, Baku, Aug. 29 /Trend/
The European Bank for Reconstruction and Development (EBRD) continues to boost Turkey's Anatolian regions, making a €3.7 million loan to Kivanc Tekstil, a leading producer of clothing fabrics and yarn based in Adana, said in report of organization.
Kivanc Tekstil, 100 per cent owned and controlled by the founding family of the same name, has successfully operated in the textile sector for more than 60 years. Today it is an industry leader in Adana, a major commercial centre and the home of Turkey's textile industry. The company supplies high-quality "Made in Turkey"-fabrics using the latest designs. Thousands of national and international clothing manufacturers use Kivanc Tekstil fabrics, including brands such as Banana Republic, Zara and Ann Taylor.
The EBRD financing will allow Kivanc Tekstil to purchase more than 50 weaving machines to expand its operations. The loan will also be used to install an additional generator that will increase the factory's co-generation capacity and recycle its own steam, thereby saving water, energy and money.
"We were impressed by this tight-knit family-owned company, run by four brothers, that operates in the highly-competitive global textile market, and in a challenging economic environment," said EBRD Director for Turkey, Mike Davey. "At the EBRD we believe that the success of Kivanc Tekstil sets an example for other companies in Adana and beyond.
We will increasingly channel our financing to eastern Turkey to ensure that such family-run businesses - which drive the Anatolian economy - have access to the much-needed finance that can help them grow," he added.
Ziya Kivanc, CEO and shareholder in the company, said: "As our business grows and our focus shifts more to the export market, it is important for us to work with an international lender with the vision and capabilities of the EBRD. Working with the EBRD has been a learning experience for all of us at Kivanc and has enabled us to see our business from a different perspective."
The EBRD loan comes under the Local Enterprise Facility, a €400 million facility for business investment in Turkey, the Balkans (Albania, Bosnia and Herzegovina, Bulgaria, Croatia, FYR Macedonia, Kosovo, Montenegro, Romania and Serbia), and the southern and eastern Mediterranean (SEMED) region (Egypt, Jordan, Morocco and Tunisia). The facility provides a wide range of flexible financial products, including equity, quasi-equity and debt financing to address the needs of companies.
Increasing support for small and medium-sized enterprises is one of the ways in which the EBRD is boosting growth in Turkey. Since the start of its operations there in 2009 the Bank has invested more than €3 billion in the country. Last year Turkey became the EBRD's second-largest country of operations by annual business volume, with €1 billion of new investments in 2012 alone.
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