Fibabanka Equity Investment

Location:

Turkey

Project number:

47220

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Approval date:

23 Mar 2022

Status:

Signed

PSD disclosed:

27 Oct 2015

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

The EBRD has acquired a minority stake in Fibabanka. The Bank has invested in newly issued shares representing 9.95 per cent of Fibabanka's share capital and voting rights. It may also participate in potential future capital increases. This is a co-investment with the IFC.

The EBRD will participate in a capital increase via a planned rights issue in place between shareholders of Fibabanka. The proposed investment amount will be used as part of Fibabanka's total capital increase of USD 30 million (EUR 26.3 million) in TRY equivalent.

Project Objectives

The operation supports the growth of a small but high potential bank in Turkey.

The capital increase will have a positive impact on the main transition objective of the Bank's initial equity investment: demonstration effect of successful IPO or a merger/acquisition with/by another Turkish bank.

Transition Impact

Sources of Transition Impact:

Market expansion

The proposed capital increase will strengthen the core capital of Fibabanka, helping to improve its resilience to market volatility as well as generate additional capacity for future growth. These are the key prerequisites for a successful IPO, which Fibabanka is aiming to accomplish in the coming years, when market conditions are favourable.

Client Information

FIBABANKA AS

Fibabanka is a local mid-size bank in Turkey. Fiba Group acquired former Millennium Bank from Banco Commercial Portuguese in December 2010, turned it around and rebranded it as Fibabanka. As of December 2021, Fibabanka ranks 23rd out of 51 banks by assets with 1,766 employees, 47 branches.

EBRD Finance Summary

EUR 41,796,473.51

Up to € 75 million for (i) the subscription to newly issued shares of Fibabanka and (ii) potential future capital increases to support the expansion of the company.

Capital Increase

Up to USD 3,000,000.00

Total Project Cost

EUR 41,796,473.51

EBRD total project cost: Up to € 75,000,000

Capital Increase

Up to USD 3,000,000.00

Environmental and Social Summary

Categorised FI. Fibabanka will be required to comply with EBRD Performance Requirements 2, 4 and 9, implement ES Risk Management Procedures across its entire portfolio and submit Annual Environmental and Social Reports to the Bank.

Technical Cooperation and Grant Financing

None

Company Contact Information

Ahu Heper Dolu
ahu.heper@fibabanka.com.tr
+90 212 381 8270
+90 212 381 8595
www.fibabanka.com.tr
Genel Müdürlük / Head Office Esentepe Mah. Büyükdere Caddesi No:129 Sisli 34394 Istanbul - Türkiye

PSD last updated

31 Mar 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
Email: procurement@ebrd.com

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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