SME FINANCE DEPARTMENT Directorate of SME Financial Researches Soley ALPAY SME Expert Presentation forTheDeauvillePartnershipwithArabCountries in Transition 10.04.2013 /ANKARA
SME FINANCE DEPARTMENT Directorate of SME Financial Researches 10.04.2013
SME FINANCE DEPARTMENTORGANIZATION STRUCTURE SME FINANCE DEPARTMENT DIRECTORATE OF SME CREDIT MANAGEMENT AND MONITORING DIRECTORATE OF SME FINACIAL RESARCHES
The Functions of SME Financial ResearchesDirectorate • Searching financial sources • Creatingfinancial models • Developing financial instruments • Monitoring the PARTICIPATIONS of KOSGEB
KOSGEB PARTICIPATIONS KOBI A.S. The company has been founded to help the SMEs which have growth potential, as sharing their risk by forming a partnership through capital contribution KGF A.S. The Fund has been created to provide security for bank loans given to the SMEs. iVCi This Fund has been created to accelerate development and enlargement of the capacity of companies that invest in venture capital. . MUALLIMKOY TECHNOLOGY DEVELOPMENT ZONE MANAGEMENT A.S. The company has been founded (2011) to supply the SME s technologicinfrastructure so that they can they can accommodate themself to new technologies. (Non-operating– stillongoinginfrastructureworks) ESIM A.S. The company has been founded to give consulting and certification services for the electrical and electronics sectorof the Turkish Industry.
KOSGEB PARTICIPATIONS • Technology Development Zones Law No. 4691 came into force on July 6, 2001 to regulate • the support of Research and Development activities assources of innovations inproductionand • forinvestmentsinvolving high technology • Eight of the 18 Technology Development Zones established in Turkey are currently operational.
Credit Guarantee Fund • The Fund has been realised by «Technical Collaboration Agreement» between Federal Government of Germany and Government of Turkish Republic in 1993. • KOSGEB participated in the company in 1995.
CreditGuaranteeFund Purpose • to facilitate easier access to finance for SME’s • to register SME’s into the formal economy, • to increase the competitive strength of SME’s, • to encourage SME‘s to borrow from banks rather than • informal means of finance.
Credit Guarantee Fund • KGF aims to secure credits used by SMEs in order to solve the security problems of these establishments. • This helps the SMEs to use more credits at cheaper costs and long term ranges. • One of the fundamental aims of KGF is to encourage the young and female entrepreneursby offering them security for loans theyuse.
Credit Guarantee Fund • Capital • The capital of KGF has increased from 60.000.000 TL to 240.000.000 TL (135.000.000$) on 9th of September 2009. • In addition to the already existing partners (KOSGEB, TOBB, TESK, HALKBANK, MEKSA and TOSYÖV) 19 banks have been made partners.
Credit Guarantee Fund Sourcesof GuaranteeSystem • Since2010, the Treasury supported guarantees are alsoprovided. • Presently, the company serves to SMES through two different guarantee system.
Credit Guarantee Fund 1 - TreasurySupportUndersecretaryof Treasury providesonebillion TL (500 million USD) source to help develop financial resources and credit system to work efficiently. • It is expected that 20.000 SME will benefitfrom the support provided. 2- Securities from equitycapital
CREDIT GUARANTEE FUND Thelimitsof theguarantee
The securities given by KGF use the following priorities: * realization of innovative investments,* small enterprises investing in hightechnologies* supporting of export*creating new jobs and investments aiming regional development Credit Guarantee Fund
Evaluation criteria for the guarantee requests a project which is to be subject to KGF guarantee should be «profitable», «realizable» and «feasible» should have an experienced managerial staff who has to be capable to manage the project should helptoincrease employment the risk of the project should be «reasonable» should be environmentalyconscious
Credit Guarantee Fund • How to apply? • declaration to the bank of the wish that the company is seeking guarantee • documentsare then sent to KGF • if approved, the demand should be ended by KGF within 2 weeks.
Credit Guarantee Fund • Limits of guarantees • For an ordinary SME – 1.000.000 TL(560.000$) • For a company in a corporate group, that is guaranteed by the group itself- 1.500.000 TL(840.000 $) • KGF supplies % 80 of the sum if the application is lessthantheabove limits.
Credit Guarantee Fund • Cost of guarantee • A fee is charged to asses the company. • If approved, the fund charges an annual commission rate of % 1 - % 2 over the remaining debt within the guaranteed amount.
Credit Guarantee Fund KGF became part of the programs of credit interest support which are signed between KOSGEB and the banks. KOSGEB’s role as a guarantor in approved guaranties has resulted in banks lowering their commission rates and other costs .
ESIM – Testing and Analysis Services Inc. Co. Purpose The company has been founded to give consulting and certification services for the electrical and electronics sector of theTurkish Industry. KOSGEB has joined in partnership in 1999.
ESIM – Testing and Analysis Services Inc. Co. ESIM offersassistance on the following issues: EMC, electromagnetic compability testing LVD, electrical safety testing IP, sprinkler tests EMF, electro magnetic field test Vibration tests Low voltage and compability testing Machinery directive Medical devices directive Telecommunication terminal devices directive Certificate of conformity for pressure vessels directive Certificate of «CE» mark supplier industry for vessels
[iVCi] Istanbul Venture Capital Investment Trust Inc. Co Purpose - This Fund has been created in 2007 to accelerate development and enlargement of the capacity of companies that invest in venture capital. - Vision of Istanbul is to make the city crossroads for the venture capital industry in South East Europe and Central Asia by the year 2020.
[iVCi] Istanbul Venture Capital Investment Trust Inc. CoFunction • It aims to function as fund of funds by investing in the funds as venturecapital. • It aims to supply venture capital or private equity to the investments which are capable for strong competition. • The investments will be realized through local andforeign funds which invest in Turkey • It will attract foreign investors to Turkey
[iVCi] Istanbul Venture Capital Investment Trust Inc. CoThe Structure of Partnership
SME Venture Capital Investment Trust Inc. Co. Purpose The company has been founded to help the SMEs which have growth potential, sharing their risk by forming a partnership through capital contribution.
SME Venture Capital Investment Trust Inc. Co.KOSGEB has joined in 1999 to the company in the amount of 12.3 percentage for the purpose of raising venture capital which is a crucial element for the finance of technological innovation.The capital of the company is 38.000.000 TL.(21 mio $)The company gives financial and administrative support to those entrepreneurs that have vision and competitive products or service projects in realizing their contribution on Turkish economy. Presently, 9 enterprises have gained private equity. The top sectors requesting for the support are respectively food, mechanic and services.In this respect KOBI A.S. gives financial support, finds new markets to develop new strategies and thus has a leading role for its partners to enlarge and expand.
SME Venture Capital Investment Trust Inc. Co. Additions to Articles of Incorporation In the General Meeting held on 17 th January 2011 following additions were made: • to build up and rule a «Business Angels Network» • to operate portfolio management within Capital Markets Board legislation • to serve as Market Advisor within Istanbul Stock Exchange Emerging Companies Market
SME Venture Capital Investment Trust Inc. CoTheStructure of Partnership For more information, please visit www.kobias.com.tr
EMERGING COMPANIES MARKETSSME Support Programme The aim of this program is to support the SMEs which have potential of development and growth to raise funds from the Emerging Companies Markets of the IMKB (Istanbul Stock Exchange).
EMERGING COMPANIES MARKETSSME Support Programme In Emerging Companies Market neither qualitive nor quantitive criteria such as profitability, operational age, capital amount etc. are sought for trading in order to help the SMEs to present themselves to the investors as well as to the financial markets to raise funds.