Sumitomo enters into deal with Turkey’s largest bank

Sumitomo Mitsui Financial Group and Garanti Bank will cooperate on trade financing.

They will focus on export credit agency financing and advice on private-public projects and structured finance. Sumitomo Mitsui established a representative office in Istanbul last February and has been expanding its operations since.

The cooperation agreement eyes syndicated loans and on helping Japanese firms do business in Turkey in the Turkish Lira. The deal will also introduce Garanti Bank to Japanese firms looking to expand into Turkey.

Sumitomo Mitsui is the third Japanese bank to do business with a Turkish bank since September.

Sumitomo Mitsui, Japan’s second biggest bank by market value, joins Mitsubishi UFJ Financial Group and Mizuho Financial Group in making deals with Turkish banks. The Japanese megabank trio is seeking to boost lending abroad since stubborn deflation is discouraging borrowing at home.