RF - Denizbank

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

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.

A senior unsecured loan of up to USD 75 million in favour of Denizbank, a universal commercial bank incorporated in Turkey. The proceeds of the loan will be channelled by Denizbank to micro, small and medium enterprises (MSMEs) operating in the agribusiness sector and smaller municipalities in Turkey.

The loan is complemented by an uncommitted USD 100 million trade finance line to support the lender's trade finance activities.

Project ID 52061

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

Company Contact Information

Nimet Sinem Yahsi
nimetsinem.yahsi@denizbank.com
+90 212 348 5453
+90 212 336 33 03
www.denizbank.com
Büyükdere Cad. No: 141 Esentepe, Istanbul, Turkey

Project ID 52061

Status Complete

Location

Türkiye

Business Sector

Financial Institutions

Notice Type

Private

Environmental Category

Approval Date

06 May 2020

Disclosure date

08 Jun 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.

RF - Denizbank (Turkish) (PDF, 0.41MB)

Project description

The loan is complemented by an uncommitted USD 100 million trade finance line to support the lender's trade finance activities.

Project objectives

The operation will enable the lender to increase the availability of short-term financing to MSMEs and smaller municipalities in Turkey facing liquidity stress due to the Covid-19 crisis.

Transition impact

ETI Score:60

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

Client information

DENIZBANK AS

DenizBank is the fifth largest private bank (eigth when state-owned banks are included) in Turkey with circa 5% market share by consolidated assets at the end of 2019. DenizBank is rated B3 (negative) by Moody`s and B+ (negative) by Fitch. It is wholly owned by Emirates NBD Bank PJSC (ENBD), which is rated A3 (Stable) 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

USD 75,000,000.00

A senior unsecured loan of up to USD 75 million under the EBRD's Resilience Framework. The loan is complemented by an uncommitted USD 100 million trade finance line to support the lender's trade finance activities.

Total project cost

USD 75,000,000.00

The loan is complemented by an uncommitted USD 100 million trade finance line to support the lender's trade finance activities.

Additionality

The project is part of the Covid-19 crisis response. EBRD financing bridges a liquidity gap due to adverse market conditions caused by Covid-19 pandemic and provides a confidence-inspiring signal associated with support from international financial institutions.

Environmental & Social Summary

Categorised FI (ESP 2019): DenizBank is an existing client. The client will be required to continue to comply with the EBRD's Performance Requirements (PRs) 2, 4 and 9, the applicable EBRD Environmental & Social Risk Management Procedures for MSME and corporate loans and submit annual environmental and social reports to the Bank. It will now be required to apply the extended Exclusion List introduced with the Environmental and Social Policy 2019 as well as the Referral List. The use of proceeds of this transaction is for the financing of MSMEs operating in the agribusiness sector and of smaller municipalities in Turkey. The overall environmental and social risk level of this type of loans is low to medium. Denizbank's environmental and social management system is adequate to identify and manage these types of risk.

Technical Cooperation and Grant Financing

N/A

Company Contact Information

Nimet Sinem Yahsi
nimetsinem.yahsi@denizbank.com
+90 212 348 5453
+90 212 336 33 03
www.denizbank.com
Büyükdere Cad. No: 141 Esentepe, Istanbul, Turkey

PSD last updated

08 Jun 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 the 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 its associated Environmental and Social Requirements (ESRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the ESRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation, and to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about the environmental and social (E&S) 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 also requires its clients to disclose information, as appropriate, about the risks and impacts of 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 of the Bank's activities 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 EBRD believes that identifying and resolving issues in the project assessment and approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts andhelps to monitor integrity risks in projects post-investment.

OCCO is further responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, either 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. OCCO will follow-up all matters reported. It will review all matters reported. 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, which entered into force on 1 January 2025, sets out how the EBRD discloses information and consults with its stakeholders to promote better awareness and understanding of its strategies, policies and operations. 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 (for example, 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 the 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 and how to submit a Request for review. Alternatively, contact IPAM by email at ipam@ebrd.com for guidance and more information on IPAM and how to submit a request.

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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RF - Denizbank

Overview

Project timeline

Company Contact Information

Project description

Project objectives

Transition impact

Client information

EBRD Finance Summary

Total project cost

Additionality

Environmental & Social Summary

Technical Cooperation and Grant Financing

Company Contact Information

PSD last updated

Understanding transition

Business opportunities

General enquiries

Environmental and Social Policy (ESP)

Integrity and compliance

Access to Information Policy (AIP)

Independent Project Accountability Mechanism (IPAM)