Turkey Agribusiness SME Financing Facility (TurAFF)

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 42211

Status Complete

Location

Türkiye

Business Sector

Financial Institutions

Notice Type

Private

Sub-projects

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Project ID 42211

Status Complete

Location

Türkiye

Business Sector

Financial Institutions

Notice Type

Private

Environmental Category

Approval Date

29 Sep 2011

Disclosure date

25 Aug 2011

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Translated version of this PSD: Turkish

Project Description

The EBRD is considering launching a framework operation valued at up to €400 million under which the Bank will provide funding to at least four commercial banks in Turkey for on-lending to private sector small and medium-sized enterprises (SMEs) operating in the agribusiness sector (TurAFF).

This TurAFF framework operation will include €200 million senior loans and €200 million co-financing where EBRD will take direct risk participation in selected SME sub-projects.

The purpose of the TurAFF is to enable the banks to expand access to medium to long-term finance avaialble to sucessful SMEs operation in the agribusiness sector in Turkey. The EBRD’s financing will also assist the banks in focussing on this priority sector and diversifying and lengthening their funding base.

Transition Impact

The Facility will provide term funding to support the banks’ lending to small and medium-size enterprises (SMEs) operating in the agribusiness sector, particularly in underserved regions. Through its co-investment process, EBRD will work with the banks to further improve underwriting and monitoring processes. Together these efforts will increase the availability of term finance to SME agribusinesses, and develop the skills within the private banking sector to assess agriculture and agribusiness risk and to provide value chain financing. This will support banks in their plans to prioritise the agribusiness sector and expand its lending to SMEs in the sector beyond this Facility.

The Client

Clients of the facility will be commercial banks in Turkey. It is planned that clients will be selected from leading commercial banks on the basis of their geographic outreach and the institutional capacity and commitment to expand SME financing in the agribusiness sector.

EBRD Finance

Up to €200 million in senior loans.

Up to €200 million in co-financing where EBRD will take direct risk participation in selected SME sub-projects.

Project Cost

Up to €400 million.

Environmental Impact

Categorised FI (2008). All Participating Banks (PBs) will be required to comply with the EBRD's Performance Requirements for FIs (specifically, PR2 and 9) and adhere to the EBRD's Environmental and Social Exclusion and Referral Lists and submit Annual Environmental and Social Reports to the EBRD. All PBs will be required to implement EBRD's Environmental and Social Procedures for Small and Micro Loans as outlined in the e-manual.

Technical Cooperation

PBs under TurAFF are envisaged to receive technical assistance to help them strenghen their institutional capacities to expand SME financing to new areas and develop new products for target groups, particularly in under-banked regions of the country. Funding for the technical assistance component is being sought from bi-lateral donors.

Company Contact

Pak Oksana
E-mail: pako@ebrd.com

Nadia Petkova
E-mail: petkovan@ebrd.com

PSD last updated

21 Jan 2019

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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