GEFF - Turkey - TSKB

Location:

Turkey

Project number:

53241

Business sector:

Financial institutions

Notice type:

Private

Approval date:

24 Nov 2021

Status:

Disbursing

PSD disclosed:

26 Apr 2022

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

Provision of a senior unsecured loan to Turkiye Sinai Kalkinma Bankasi A.S. ("TSKB"), a joint stock company incorporated in Turkey, in the amount of up to EUR 53.5 million. The loan to TSKB was co-financed by the Clean Technology Fund ("CTF"). The proceeds will be used for financing corporate and residential sectors under the new Green Economy Financing Facility ("GEFF") Turkey framework.

Project Objectives

The project aims to support green economy investments including among others energy efficiency, renewable energy and climate resilience measures. Funds may also be on-lent to vendors and producers of eligible material and equipment covered by the Green Technology Selector for Turkey. Cooperation will also be sought with TSKB and sub-borrowers on the mainstreaming of corporate climate governance ("CCG") and gender-responsive on-lending and better integration of climate change and gender equality considerations into TSKB's lending strategies and practices. The loans will be supported by Technical Cooperation ("TC") and by incentive payments, as envisaged by the Green Economy Financing Facility ("GEFF") Framework. Concessional financing will also be available to support TSKB to integrate climate change into their corporate governance approach.

Transition Impact

ETI score: 70

The project will contribute to the objectives of GEFF Turkey by supporting the Green and Well-governed TI qualities. It will promote the transition to environmentally sustainable, low-carbon and climate-resilient economies in Turkey, preventing the economy from being locked into carbon-intensive, climate-vulnerable and/or environmentally damaging polluting pathways. It will also contribute to TSKB`s ambitions for implementing specific corporate climate governance practices.

Client Information

TURKIYE SINAI KALKINMA BANKASI AS

TSKB is a publicly listed private sector development and investment bank in Turkey. Isbank is the majority shareholder with 51.4% stake (including the shares belonging to its subsidiaries), followed by Vakifbank with 8.4% stake. The remaining 40.9% of the shares are publicly traded on Borsa Istanbul. TSKB has c. 1% market share with EUR 5.7bn in total assets, EUR 4.3bn in gross loans and EUR 0.5bn in capital as of YE21.

EBRD Finance Summary

EUR 50,000,000.00

Total Project Cost

EUR 53,500,000.00

Additionality

The proposed transaction should enable TSKB to access longer-term financing which is essential to finance green economy investments. EBRD offers an innovative green finance instrument that integrates aspects such as climate and ESG risk considerations into the financing structure.

Environmental and Social Summary

Categorised FI (ESP 2019). TSKB is an existing client and has demonstrated compliance with the applicable PRs through its annual environmental and social reporting. TSKB will be required to continue to comply with EBRD's Performance Requirements (PRs) 2, 4 and 9, including the updated exclusion and newly introduced Referral List stemming from ESP 2019; implement the applicable EBRD's E&S Risk Management Procedures for Micro, SME and Corporate Lending and submit Annual Environmental and Social Reports to the Bank.

Technical Cooperation and Grant Financing

GEFF Turkey is supported by a TC programme for a total amount of up to EUR 7.1 million for the engagement of the Facility Consultant and c. EUR 21.5 million concessional co-financing to be provided by the CTF.

Company Contact Information

Ece Coskunturk
developmentfinanceinstitutions@tskb.com.tr
www.tskb.com.tr
Meclisi Mebusan Cad. 81 Findikli Istanbul Turkey

PSD last updated

26 Apr 2022

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
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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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