AkBank - SME Credit Line (Agribusiness & SEFF)

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 43783

Status Complete

Location

Türkiye

Business Sector

Financial Institutions

Notice Type

Private

Project timeline

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

Project ID 43783

Status Complete

Location

Türkiye

Business Sector

Financial Institutions

Notice Type

Private

Environmental Category

Approval Date

24 Jul 2012

Disclosure date

22 Jun 2012

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 providing a €50 million senior loan to Akbank for on-lending to two priority categories of clients: Small and Medium Enterprises (SMEs) operating in the agribusiness sectors; SMEs and households for investments in energy efficiency and renewable energy.

The purpose of the project is to expand the banks’ SME lending operations in the underserved regions and for specific sectors (e.g., primary agriculture and energy efficiency). The proposed loan will build on the successful utilisation of the EBRD loan provided to Akbank under Turkey Private Sector Sustainable Energy Financing Facility in May 2010.

Transition Impact

Transition impact will arise through market expansion which will be achieved by providing medium and long term financing through the bank for specific sectors and purposes (e.g., agriculture and energy efficiency investments) using their large distribution networks where it can play a role in expanding capital flows to SMEs in under-served regions or sectors.

The transaction will also demonstrate the benefits of energy conservation and promoting the expansion of energy efficiency investments, and the effects of rational energy utilization for improving industrial competitiveness in the light of the rising energy costs in the region.

The Client

Akbank is the fourth-largest commercial bank and the third-largest private-sector bank in Turkey by assets. The bank’s main business segments include retail banking, corporate banking, private banking, treasury activities, international banking and other activities through its subsidiaries (i.e. insurance agency, leasing, brokerage and portfolio management). The bank is rated Ba3 by Moody’s (Negative) and BBB- by S&P (Stable).

EBRD Finance

Senior loan of €50 million to Akbank.

Project Cost

Up to €50 million to be provided in either USD or TRY.

Environmental Impact

Categorised FI: Akbank will be required to comply with the EBRD’s Performance Requirements for Financial Institutions (specifically, PR2: Labour and Working Conditions and PR9: Financial Intermediaries). The bank will implement the EBRD's Environmental and Social Procedures for Corporate Lending.

An Independent Consultant will be hired by the EBRD to cover environmental and social issues as part of the preparation of each sub-project under the TurSEFF and ensure compliance with the EBRD’s RE and EE eligibility criteria.

Akbank will also be required submit annual environmental and social reports to the Bank.

Technical Cooperation

The loan will be accompanied by TC to help the product design and to strengthen the bank’s skills to assess agriculture and agribusiness risk as well as to design value chain financing products.

Akbank has already benefited from tailored technical assistance to build expertise in assessing the risk and creditworthiness of clients for energy efficiency investments and skills transfer through training of Akbank staff in environmental issues. Under this transaction, Akbank will use the skills it has gained to assess sustainable energy sub-projects under preparation or already in its pipeline.

Company Contact

Oksana Pak

E-mail: pako@ebrd.com

PSD last updated

01 Feb 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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