The EBRD is providing USD 100 million financing to DenizBank A.S. ("DenizBank" or the "Bank") under DenizBank's existing Diversified Payment Rights ("DPR") programme. The proceeds of the financing is split equally between the Turkey Sustainable Energy Financing Facility III ("TurSEFF III") and the Women in Business II ("TurWiB II").
The Project supports diversification of investor base and provides long term funding for the Bank.
TurSEFF III aims to (i) further increase financial intermediation for small scale (unlicensed) renewable energy investments and a broader range of resource efficiency investments, including energy efficiency, waste minimisation and water savings; (ii) include public sector investments; and (iii) further improve the financial institutions' skills in recognizing and assessing a wider range of sustainable energy and resource efficiency projects.
TurWiB II is an integrated and dedicated programme supporting women entrepreneurship and women-led SMEs. EBRD financing will be accompanied by (i) a technical cooperation programme to help DenizBank to build their internal capacity to better serve this segment, and (ii) a risk sharing mechanism supported by the Turkish Credit Guarantee Fund ("CGF") 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.
ETI score: 75
The Project will contribute to Green, Inclusive and Competitive transition impact 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.
The Project further supports the market recovery in the wake of Covid-19 outbreak.
DENIZBANK AS DPR
DenizBank is the fifth largest private bank in Turkey with circa 4% market share by consolidated assets as of 3Q2020. DenizBank is rated B3 (negative) by Moody`s and B+ (negative) by Fitch. The bank is wholly owned by Emirates NBD Bank PJSC (ENBD), which is rated A3 (Negative) by Moody's and A+ (Stable) by Fitch. Listed on the Dubai Financial Market, ENBD is 56% owned by the state-owned Investment Corporation of Dubai, 5% by Capital Assets LLC, with 39% being free float.
EBRD Finance Summary
Total Project Cost
The additionality stems from i) financing structure that supports DenizBank in acquiring longer-term external financing, contributing to diversification of DenizBank's funding, ii) supporting higher energy efficiency standards and enhancing access to finance for women led SMEs.
Environmental and Social Summary
Categorised FI (ESP 2019). DenizBank 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 Financial Institutions and submit Annual Environmental and Social Reports to EBRD. For Energy Efficiency and Renewable Energy sub-loans under TurSEFF III, an independent Project Consultant will be in place to ensure that all these comply with the national EHSL requirements, Green Energy Transition exclusions, and the EBRD's eligibility criteria for wind, solar, geothermal, bioenergy and hydro projects, as applicable.
Technical Cooperation and Grant Financing
TurSEFF III is supported by a Technical Cooperation ("TC") programme in the amount of EUR 5.5 million. Funding for the programme 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".
TurWiB II is supported by a TC programme for a total amount of up to EUR 4.13 million funded by the EU-EBRD Private Sector Support Facility, EBRD SSF and Turkey-EBRD Cooperation Fund Account.
Company Contact Information
Nimet Sinem Yahsi
+90 212 348 5453
Büyükdere Cad. No: 141 Esentepe, Istanbul, Turkey
PSD last updated
19 Feb 2021
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