The EBRD has provided USD 127 million financing to Turkiye Is Bankasi A.S. ("Isbank") under Isbank's existing Diversified Payment Rights ("DPR") programme. The proceeds of the financing will be split between the Women in Business II ("TurWiB II"), USD 76 million, and the Turkey Sustainable Energy Financing Facility III ("TurSEFF III"), USD 51 million ("The Project").
TurWiB II is an integrated and dedicated programme aimed at supporting women entrepreneurship and women-led SMEs. EBRD financing will be accompanied by (i) a technical cooperation programme to assist Isbank to build its internal capacity by developing new systems, business and institutional models, products and delivery mechanisms to effectively reach outand better serve this segment, and (ii) a risk sharing mechanism supported by the Turkish Credit Guarantee Fund (Kredi Garanti Fonu, the "KGF") to stimulate lending on a sustainable basis. In addition, women entrepreneurs will be provided with advisory, mentorship and networking opportunities, facilitating their access to know-how and non-financial development services, as well as access to markets.
TurSEFF III aims to (i) further increase financial intermediation for small-scale renewable energy investments and a broader range of resource efficiency investments, including energy efficiency, waste minimisation and water savings; (ii) further improve the financial institutions' skills in recognizing and assessing a wider range of sustainable energy and resource efficiency projects.
ETI score: 70
The Project will contribute to Green, Inclusive and Competitive TI qualities. It supports building green economy and strengthening the role of women-led SMEs in the economy, putting emphasis on under-served women entrepreneurs, including first-time borrowers and those based outside of main commercial centres in Turkey.
TURKIYE IS BANKASI AS
As of June 30, 2022, Isbank is the largest private bank in Turkey with total assets of EUR 66bn (10.7% market share) and total equity of EUR 7.8bn (consolidated basis), operating through 1,153 domestic and foreign branches. Isbank is rated B- (Negative) by Fitch and B3 (Stable) by Moody's.
EBRD Finance Summary
Total Project Cost
The additionality stems from i) financing structure that supports Isbank in securing longer-term external financing, contributing to diversification of Isbank's funding, ii) supporting higher energy efficiency standards and enhancing access to finance for women led SMEs iii) standard-setting by helping projects and clients to achieve higher standards. The transaction is expected to support Isbank to roll out new products to better meet the needs of women-led SMEs, improving access to finance.
Environmental and Social Summary
Categorised FI (ESP 2019). Isbank is an existing client and will be required to continue to comply with EBRD's Performance Requirements (PRs) 2, 4 and 9; continue to implement the applicable EBRD's Environmental and Social (E&S) Risk Management Procedures for Micro, SME and Corporate loans for Financial Institutions and submit Annual Environmental and Social Reports to EBRD.
Technical Cooperation and Grant Financing
Both TurWiB II and TurSEFF III are supported by Technical Cooperation ("TC").
TurWiB II is supported by a TC Programme for a total amount of EUR 4.13 million funded by the "EU Instrument for Pre-Accession Assistance (IPA) 2009 Turkey Private Sector Support Facility", EBRD SSF and the "Turkey - EBRD Cooperation Fund".
In case of TurSEFF III, the TC is up to EUR 5.5 million. Funding is provided by the European Union under two contribution agreements "Enhancement of Turkish Energy Sector in line with EU Energy Strategies" and "EU Instrument for Pre-Accession Assistance (IPA) 2009 Turkey Private Sector Support Facility", and by the Republic of Turkey Ministry of Treasury and Finance under the "Turkey - EBRD Cooperation Fund".
Company Contact Information
Meryem Onel Walker
90 212 316 28 41
Türkiye Is Bankasi A.S. Financial Institutions Division Is Kuleleri Kule:1 Kat:25 34330 4.Levent - Istanbul
PSD last updated
01 Sep 2022
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Independent Project Accountability Mechanism (IPAM)
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