The transaction is a primary direct equity investment of EUR 9.8m into the share capital of Turk Elektronik Para A.S. ("Param"). Other investors include CCL Investments SaRL ("CEECAT Capital"), a private equity fund focused on Emerging Europe, Alpha Associates and Revo Capital, with total financing amount of EUR 27.2m.
The investment is part of total equity investment by EBRD of EUR 13.7m, into Param Group, including Param and Turk Finansman A.S. ("Kredim"). Total amount raised by Param Group is EUR 38m.
The investment will enable Param to support future growth, develop technology, marketing and HR.
ETI score: 67
Competitive: Investing in expansion of Param Group will support a number of operational changes and the launch of new products. Param Group aims at providing digital and open banking services in the near future, leading to competitiveness improvements.
Well-Governed: Substantial improvement in financial management in the context of equity co-investment alongside a private equity fund, including hiring of the CFO and other key financial positions, audit by Big 4 firm. Improvement in corporate governance will be implemented, including adding an independent board member, adding board observer for each new investor, new Corporate Governance Committee.
TURK ELEKTRONIK PARA
Param is a leading independent non-bank Payment Service Provider ("PSP") with a 22% market share and e-Money company in Turkey, serving large corporate merchants facilitating on-line transactions. Param is present across the entire payments value chain (card issuing, acquiring, and processing) and has strong in-house technical capabilities providing significant competitive advantage. Deep technical know-how, fully in-house software and product development capabilities enable rapid product deployment.
Param started in 2013 as a prepaid card provider for lawyers and professionals. At the onset of Covid-19 crisis, the company made significant investments in technology infrastructure and launched a new strategy to focus on large corporate merchants.
EBRD Finance Summary
Direct equity investment of EUR 9.8m
Total Project Cost
Direct equity investment of EUR 9.8m
The project is additional because it represents the first institutional funding experience of Param Group and will result in strengthening of its corporate governance. Param Group is gradually transforming itself into a leading national player with regional aspirations and preparing for future institutional financing rounds and a possible IPO. The investment supports quick pace of company's growth as well as high female representation in senior managerial positions and is in line with EBRD's Strategy for the Promotion of Gender Equality.
Environmental and Social Summary
Categorised C (2019 ESP). Low risk. Environmental and Social Due Diligence (ESDD) was carried out by ESD and included the review of Environmental & Social (E&S) Questionnaire. Direct equity co-investment (representing up-to 7.5% stake in Param) in a payment services provider and e-money company for financing acquisition of software is unlikely to be associated with significant environmental risks and impacts. Based on the ESDD, Param Group employs 106 people, they have been currently working on the establishment of ISO 14001, ISO 45001 and corporate responsibility management systems, and their certification is in progress. Param Group is in compliance with relevant environmental, health and safety national law. For the project, Param Group is required to ensure that its operations continues to comply with EBRD PRs as well as human resource policies and labour management, data protection, cyber and information security, stakeholder engagement and grievance mechanism and provide an annual environmental and social report to the Bank. No additional ESDD is required. Equity investments are not included within the scope of the current methodologies for Physical Climate risk assessment or Paris Alignment. The project has no GET component.
Technical Cooperation and Grant Financing
Company Contact Information
+90 (552) 964 07 98
Prof. Dr.Ahmet Taner Kislali Mh.2405.Sok.No:5 Cankaya/Ankara/TURKEY
PSD last updated
08 Sep 2022
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