FIF - Vakifbank - Refugee Response Initiative

Location:

Turkey

Project number:

48635

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Approval date:

20 Sep 2017

Status:

Cancelled

PSD disclosed:

27 Jul 2016

Translated version of this PSD: Turkish

Project Description

The EBRD has approved EUR 50 million (or its USD or TRY equivalent) financing to Turkish lender Vakifbank under the Refugee Crisis Response Facility to finance MSMEs operating in the primary and secondary target regions including those MSMEs owned and/or led by people displaced by the conflict in Syria. The project can be funded through a range of financing instruments, including but not limited to senior notes issued under the company's existing Diversified Payment Rights programme or residential mortgage covered bonds. Vakifbank is the first participating financial institution to receive approval for financing under the Refugee Crisis Response Facility.

Project Objectives

As part of the EBRD's refugee crisis response effort, the Refugee Crisis Response Facility will promote MSME entrepreneurship in Turkey's regions most affected by the refugee crisis and more broadly, improve the economic resilience of impacted regions, by increasing local availability of MSME finance and capacity building programmes to support local enterprise development in impacted regions. Vakifbank's extensive branch network in the most affected regions makes it a perfect conduit for delivering the refugee crisis response objectives.

Transition Impact

Under this Facility, transition impact will stem from: (i) increasing long-term funding available to MSMEs in the primary and secondary target regions of Turkey; and (ii) demonstrating new replicable behaviour and activities to accelerate growth in these regions, to be accomplished via contribution
to integration of economic activities into the national economy and via improving access to finance to MSMEs and capacity building programmes to support local enterprise development in these economically less advanced regions.

Client Information

TURKIYE VAKIFLAR BANKASI T.A.O.

Vakifbank, listed on Borsa Istanbul, is a full-service commercial and retail bank in Turkey with a  wide regional network. The company is a quasi-state-owned entity as it is indirectly majority-owned (58.5%) by the General Directorate of Foundations, a governmental institution. 16.1% are owned by the employees' pension fund and another 25.2% are publicly traded on Borsa Istanbul. Vakifbank is the seventh largest commercial bank by assets and the third largest state-controlled bank in Turkey and is currently rated Baa3 by Moody's and BBB- by Fitch.

EBRD Finance Summary

EUR 50,000,000.00

Total Project Cost

EUR 50,000,000.00

Environmental and Social Summary

Categorised FI. Vakifbank will be required to comply with the EBRD's Performance Requirements 2, 4 and 9, apply the EBRD's environmental and social risk management procedures for SME loans and ensure sub-borrowers comply with national requirements for environment, health, safety and labour
standards. Vakifbank will submit annual environmental and social reports to the EBRD.

Technical Cooperation

The Refugee Crisis Response Facility is supported by inter-linked technical cooperation and first loss risk cover to participating financial institutions to increase local availability of MSME finance in impacted regions, including for those owned and/or led by refugees and for those employing refugees. The EBRD's Board of Directors approved EUR 5 million of first loss risk cover under the Shareholder Special Fund Community Resilience sub-account.

Company Contact Information

Mr. Mustafa Turan, Senior Vice President
Mustafa.TURAN@vakifbank.com.tr
+90 212 316 7500
+90 212 316 7126
http://www.vakifbank.com.tr/
Camlik Caddesi, Cayir Cimen Sok. No:2 Kat:6 1.Levent 34330, Istanbul, Turkey

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP 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. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Share this page: