RF - Aklease

Location:

Turkey

Project number:

51724

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Approval date:

24 Jun 2020

Status:

Disbursing

PSD disclosed:

24 Jul 2020

As permitted by paragraph 2.6 of Section III of the Access to Information Policy, disclosure of this PSD was deferred in accordance with paragraph 1.4.4 of the Directive on Access to Information.

Project Description

This project was approved as part of the Bank's response to the Covid-19 pandemic. To avoid delays to the delivery of this project, the Bank's President granted a deviation from the ordinary timelines for PSD disclosure, as contemplated by Section V of the Directive on Access to Information. Details of the Bank's response to Covid-19, and this deviation, can be found on our website.

Provision of a senior loan of up to EUR 40 million in favour of Ak Finansal Kiralama A.S. ("Aklease"). The proceeds of the loan will be channelled via Aklease to Turkish businesses to fund their capital expenditure needs.

Project Objectives

The operation will enable the company to increase the availability of funding to corporates and SMEs in Turkey for crucial capital investments to mitigate medium to long-term negative impacts of Covid-19.

Transition Impact

ETI score: 60

The main goal of the project is to ensure resilience and preserve competition in the financial sector. The transition impact of the project will stem from the "Resilient" and "Competitive" transition qualities by providing Aklease with funding to scale up its leasing activities as part of its growth trajectory and to remain an active and effective market player amid the Covid-19 pandemic.

Client Information

AK FINANSAL KIRALAMA AS

Ak Finansal Kiralama A.S. is the fourth largest leasing company operating in Turkey in terms of net leasing receivables with c. 9% market share. The company is a subsidiary of a top-tier Turkish bank (Akbank T.A.S.), a joint stock company incorporated in Turkey, which is 48.8% owned by Sabanci Holding.

EBRD Finance Summary

EUR 40,000,000.00

A senior loan of up to EUR 40 million.

Total Project Cost

EUR 40,000,000.00

Additionality

The project is additional as a Covid-19 crisis response. EBRD financing effectively bridges a liquidity gap due to adverse market conditions caused by the Covid-19 pandemic and provides a signal of confidence through IFI support.

Environmental and Social Summary

Categorised FI (ESP 2019): Aklease is an existing client with a well-developed ESMS and will be required to continue to comply with EBRD's Performance Requirements (PRs) 2, 4 and 9; continue to implement the applicable E&S Risk Management Procedures for Leasing Companies and submit the Annual Environmental and Social Reports to the Bank. Aklease will be required to apply the updated Exclusion List introduced with ESP 2019 as well as the Referral list.

Technical Cooperation and Grant Financing

N/A

Company Contact Information

Aklease Financial Institutions
avni.bayazit@aklease.com
+90 (0) 212 386 96 53
+ 90 (0) 212 386 96 59
www.aklease.com
Sabancı Center Kule:2 Kat: 9 4.Levent 34330, ISTANBUL

PSD last updated

24 Jul 2020

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP 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 following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.

 

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