Export Development Canada finances Turkey’s AkLease to create opportunities for Canadian equipment makers
OTTAWA--Export Development Canada (EDC) has provided a USD $10 million line of credit to Turkish leasing company Ak Finansal Kiralama (AkLease), which will be used to provide financing to Turkish companies leasing equipment from Canadian manufacturers.
“EDC’s partnership with AkLease is about making it easier for Canadian companies to win new equipment leasing business in the booming Turkish market,” said Zenon Woychyshyn, EDC’s Chief Representative in Turkey. “EDC has been working with AkLease and their customers for many years, and we see this formal financing agreement as the next logical step in connecting Canadian equipment with new Turkish buyers.”
Increasing demand for Canadian-made equipment and machinery precipitated EDC’s interests in deepening its relationship with AkLease.
The partnership with AkLease is designed to serve smaller transactions of USD 500 K or more. As a result, the line of credit creates ample opportunities for Canadian small- and medium-sized enterprises (SMEs) operating in, or selling to, the Turkish market.
The Government of Canada’s Global Markets Action Plan has identified Turkey as a strategic market of opportunity for Canadian firms and EDC is committed to fostering commercial deals between Canadian and Turkish companies. Supply chain opportunities exist in a number of Turkish sectors, including energy, information and communication technology, mining, education and infrastructure.
Turkey is developing an ambitious plan to become a top ten economy by 2023, the nation’s centennial. The Turkish Government recently announced EUR 100 B in infrastructure projects over the next five years, with approximately 70% of this spending dependent on financing by domestic banks. EDC’s partnership with AkLease will allow Canadian companies to supply the necessary equipment and machinery to local companies contracted to deliver these projects.
EDC has had a permanent representation in Istanbul since 2010. In 2013, 388 Canadian companies used EDC’s products and services to help conclude more than CAD 2.2 B in business between Turkish and Canadian companies within the Turkish market.
EDC also has a permanent presence in Bogota, Rio de Janeiro, São Paulo, Lima, Mexico City, Monterrey, Santiago, Shanghai, Beijing, Singapore, Mumbai, New Delhi, Moscow, Abu Dhabi, and Düsseldorf.
AK Finansal Kiralama A.S. provides financial leasing services. Its lease portfolio consists of financial leases for transportation vehicles and aircraft, real estate, electronic equipment, construction machinery, medical and office equipment, and others. The company was founded in 1988 and is based in Istanbul, Turkey. AK Finansal Kiralama A.S. operates as a subsidiary of Akbank T.A.S.
EDC is Canada’s export credit agency, providing financing and insurance solutions locally and around the world to help Canadian companies of any size respond to international business opportunities. As a profitable Crown corporation that operates on commercial principles, EDC works together with private- and public-sector financial institutions to create greater capacity for Canadian companies to engage in trade and investment.