FIF - Finansbank MSME Financing Facility - DPR

Location:

Turkey

Project number:

47647

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Target board date:

24 Jun 2015

Status:

Signed

PSD disclosed:

16 Oct 2015

Translated version of this PSD: Turkish

Project Description

The EBRD has invested US$100 million, in rated senior bond notes (the “Facility”), issued under Finansbank’s (“FB” or the “Company”) existing Diversified Payment Rights (“DPR”) programme. EBRD’s notes are backed by specifically defined foreign currency denominated payment orders of Finansbank. This new DPR issuance is rated BBB+ by Fitch. Finansbank is the 6th largest privately owned bank in Turkey by asset size. 

The project comes under the Small Business Initiative Operational Plan - Financial Intermediary Framework. The proceeds of EBRD’s investment are to be used by Finansbank to on-lend to eligible MSMEs in priority regions in Turkey with a specific focus on agribusiness for 40 per cent of the facility. This facility has been designed to leverage Finansbank’s geographic and client scope through extension of the financing to MSME clients in Turkey in under-served regions.

Transition Impact

Transition impact is expected to derive from market expansion by providing Finansbank with funding to scale up its MSME lending activities in the priority regions of Turkey, including for agribusiness. Indirect support for primary agriculture through rural credit lines continues to be one of the main operational priorities of the EBRD. The proposed facility will provide longer term financing MSMEs agribusinesses operating in the regions allowing them to invest to achieve improved productivity, higher quality products and better food safety.

The Client

Finansbank was incorporated in 1987 and is the 6th largest private commercial bank in Turkey, with total assets of €28 billion, representing 3.8 per cent market share. Its activities include trade finance, corporate and commercial banking, treasury, retail banking and credit operations. Finansbank operates through a total of 658 branches and is currently rated Ba2 by Moody’s and BBB- by Fitch.

EBRD Finance

US$ 100 million investment grade-rated loan notes

Project Cost

US$ 280 million

Environmental and social categorisation, impact, and mitigation

Categorised FI. As an existing partner bank of EBRD since 2012, Finansbank is satisfactorily complying with PRs 2 & 9 under its existing exposures with the EBRD and has regularly provided Annual Environmental and Social Reports.  Finansbank will be required to ensure that sub-loans under the facility comply with the requirements of PR9 and submit Annual Environmental and Social Reports to the EBRD.

Technical Cooperation

None

Company Contact

Ms. Isil GURBUZ
Division Manager
Banking Relations and Structured Funding
International Division
Tel: +90 212 318 5168
Fax: +90 212 318 5648
isil.gurbuz@finansbank.com.tr

Business opportunities

For business opportunities or procurement, contact the client company.

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