• 09/01/2014

Great Support to Agricultural Entrepreneurs from DenizBank

DenizBank can now extend loans to its customers against ELİDAŞ's electronic warehouse receipts and at the same time, electronic warehouse receipts can be traded through DenizYatırım.

In 2002, with the acquisition of Tarişbank, our Bank assumed Tarişbank's mission of supporting Turkish Agriculture and maintains its leading position among private banks with its sector-specific financing solutions and wide product range. In this strategic decision, Tarişbank, one of the leaders in the sector with its heritage inherited from Milli Aydın Bank and its 90 years of experience, has significant know-how and experience.

With the new agreement signed with ELİDAŞ, one of the partners of DenizBank, which stands out with its efforts to increase productivity in agricultural production and the competitive power of Turkish agriculture as well as the financial support it provides to the agricultural sector as the private bank extending the highest amount of loans, entrepreneurs will be able to use loans from DenizBank against EWR (electronic warehouse receipt). DenizYatırım can also act as an intermediary in the purchase and sale of EWR.

Established in early 2011 by 19 legal entity partners under the leadership of Izmir Commodity Exchange to carry out licensed warehousing activities for agricultural products, ELİDAŞ has opened Turkey's first cotton licensed warehouse and the first cotton authorized classifier laboratory. With the licensed warehousing pioneered by ELİDAŞ, farmers can store their classifiable agricultural products such as cotton and oilseeds in licensed warehouses by having them analyzed and classified. Thanks to licensed warehousing, farmers can store their products in safe and healthy warehouses, certify their product quality, and use fast and low-interest loans against warehouse receipts. In addition to all these, licensed warehousing also offers producers the opportunity to sell in an electronic environment where competition is intense.

With ELİDAŞ's EWR, which is a first in Turkey, it is aimed to register, evaluate and monitor the stock-like virtual papers, which can be traded on the stock exchange, belonging to the investor who deposits cotton in the licensed warehouse, electronically by MKK (Central Registry Agency). EWRs can be bought and sold electronically according to market prices and prices can be monitored in the free market. Even customers who have no interest in cotton can buy and sell cotton after these bonds are traded on the Stock Exchange.

Ahmet Özlü, General Manager of ELİDAŞ, said; “Our company was established in partnership with the Stock Exchanges, Chambers, Unions and Financial Institutions in order to contribute to the agricultural sector. On March 22, 2013, after its official opening, our company experienced its first cotton harvest season and achieved its projected targets. With its modern storage facilities, ELİDAŞ protects cotton owners against the risks of quality deterioration that may occur due to waiting in cotton, and also eliminates insurance costs, which is a serious cost for cotton warehouses. Cotton has been registered electronically, making it an investment instrument for all investors. With this system, it is aimed to create a structure in which investors as well as the traditional parties in the cotton sector, namely farmers, ginners and yarn industrialists, will win. On the other hand, earnings arising from the purchase and sale of Electronic Warehouse Receipts are exempt from income and corporate tax until 31.12.2014. It is expected that the implementation will continue and the system will be paved the way with additional measures that will directly include the farmers in the system.”

“Özaltın Agricultural Enterprises became the first customer of the EWR System

Making a statement on the subject, DenizBank Western Anatolia Regional Manager Hasan Özer Orhan said that their support to agricultural sector will continue to increase. Orhan said, “With the licensed warehousing system in cotton, a new era has started for all segments from producers to traders, industrialists to investors. Thanks to the licensed warehousing system; the cotton owner puts his product to ELİDAŞ and in return, he can use loans from DenizBank in a simple and fast way at affordable costs. In this way, he can sell his product at the targeted price whenever he wants. Through EWR bonds, investors can invest in cotton even if they are not cotton producers. Our Bank saw the potential and developments in the agricultural sector and invested in this sector, bringing a different and new perspective to the financial movements in the sector. Özaltın Agricultural Enterprises was our first customer to benefit from the EWR system. Our Bank is the largest lender to the agricultural sector, the total amount of loans we extended to the agricultural sector reached TL 3 billion and the number of our customers reached 700 thousand. Our support to agriculture will continue to increase.”

Özaltın Tarım İşletmeleri AŞ Company partner Kasım Külek Öz shared his happiness for being the first to use the system, which is new in Turkey but applied in many parts of the world, especially in the USA, and said: “Licensed warehouses were the basic condition for the formation of derivatives markets. In the licensed warehouse, cotton is analyzed and categorized in a single bale system and stored according to the analysis results. This is an important step in terms of the quality and standard of the raw material.”