Translated version of this PSD: Turkish
The EBRD is considering providing a €50 million senior loan to Akbank for on-lending to two priority categories of clients: Small and Medium Enterprises (SMEs) operating in the agribusiness sectors; SMEs and households for investments in energy efficiency and renewable energy.
The purpose of the project is to expand the banks’ SME lending operations in the underserved regions and for specific sectors (e.g., primary agriculture and energy efficiency). The proposed loan will build on the successful utilisation of the EBRD loan provided to Akbank under Turkey Private Sector Sustainable Energy Financing Facility in May 2010.
Transition impact will arise through market expansion which will be achieved by providing medium and long term financing through the bank for specific sectors and purposes (e.g., agriculture and energy efficiency investments) using their large distribution networks where it can play a role in expanding capital flows to SMEs in under-served regions or sectors.
The transaction will also demonstrate the benefits of energy conservation and promoting the expansion of energy efficiency investments, and the effects of rational energy utilization for improving industrial competitiveness in the light of the rising energy costs in the region.
Akbank is the fourth-largest commercial bank and the third-largest private-sector bank in Turkey by assets. The bank’s main business segments include retail banking, corporate banking, private banking, treasury activities, international banking and other activities through its subsidiaries (i.e. insurance agency, leasing, brokerage and portfolio management). The bank is rated Ba3 by Moody’s (Negative) and BBB- by S&P (Stable).
Senior loan of €50 million to Akbank.
Up to €50 million to be provided in either USD or TRY.
Categorised FI: Akbank will be required to comply with the EBRD’s Performance Requirements for Financial Institutions (specifically, PR2: Labour and Working Conditions and PR9: Financial Intermediaries). The bank will implement the EBRD's Environmental and Social Procedures for Corporate Lending.
An Independent Consultant will be hired by the EBRD to cover environmental and social issues as part of the preparation of each sub-project under the TurSEFF and ensure compliance with the EBRD’s RE and EE eligibility criteria.
Akbank will also be required submit annual environmental and social reports to the Bank.
The loan will be accompanied by TC to help the product design and to strengthen the bank’s skills to assess agriculture and agribusiness risk as well as to design value chain financing products.
Akbank has already benefited from tailored technical assistance to build expertise in assessing the risk and creditworthiness of clients for energy efficiency investments and skills transfer through training of Akbank staff in environmental issues. Under this transaction, Akbank will use the skills it has gained to assess sustainable energy sub-projects under preparation or already in its pipeline.
For business opportunities or procurement, contact the client company.
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Tel: +44 20 7338 7168
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