FIF - Garanti DPR - Cyprus MSMEs

Location:

Regional

Project number:

48670

Business sector:

Financial institutions

Notice type:

Private

Target board date:

20 Jul 2016

Status:

Signed

PSD disclosed:

03 Jan 2017

Translated version of this PSD: Turkish

Project Description

The EBRD is providing EUR 5 million (in USD equivalent) to Turkiye Garanti Bankas A. ("Garanti" or the "Company") under the Financial Intermediaries Framework. The financing will be a part of EBRD`s investment of EUR 55 million (in USD equivalent) in rated notes issued under Garanti`s existing Diversified Payment Rights ("DPR") programme. EBRD's notes are backed by specifically
defined foreign currency denominated payment orders of Garanti.

Project Objectives

The funding will be used to finance eligible MSMEs operating in the northern part of Cyprus.The facility will effectively leverage Garanti's geographic scope to extend financing to EBRD's priority
regions within the MSME segment.

Transition Impact

Transition impact will stem from market expansion by providing medium term financing to Garanti to help scale up its MSME lending activities in the northern part of Cyprus.

Client Information

TURKIYE GARANTI BANKASI AS

Garantibank, listed on Borsa Istanbul, is the third-largest bank in Turkey (by assets) and the second largest privately-owned bank. Garanti is rated BB (stable) / BBB (negative) / Ba2 (stable) by S&P,
Fitch and Moody's. Garanti is a universal bank and serves 13.8 million customers in the corporate, commercial, MSME and consumer segments, offering fully integrated financial services through its
domestic and foreign branches.

EBRD Finance Summary

EUR 5 million (in USD equivalent)

Total Project Cost

EUR 5,000,000.00

Environmental and Social Summary

Categorised FI. Garanti is satisfactorily implementing the EBRD's E&S requirements under existing exposures. The bank is in compliance with PRs 2, 4 and 9 and has submitted satisfactory Annual
Environmental and Social reports to date. For this transaction Garanti will continue to apply the EBRD's E&S requirements for Corporate and SME Loans.

Technical Cooperation

None.

Company Contact Information

Gencay Gedik
gencayge@garanti.com.tr
0090 212 318 17 33
0090 212 216 62 17
www.garanti.com.tr
Levent, Nispetiye Mah. Aytar Cad. No:2 34340 Besiktas, Istanbul, Turkey
 

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