Garanti DPR – TurWIB

Location:

Turkey

Project number:

48248

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Target board date:

20 Jul 2016

Status:

Signed

PSD disclosed:

03 Jan 2017

Translted version of this PSD: Turkish

Project Description

The EBRD is providing EUR 50 million (in USD equivalent) to Turkiye Garanti Bankasi A.S ("Garanti" or the "Company") under the Turkey Women in Business ("TurWiB"). 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 project comes under the TurWiB framework, which is an integrated and dedicated programme supporting women entrepreneurship and women-led SMEs. The goal of the facility is to strengthen
women's participation in the economy by improving access to finance and advice. The proposed facility to Garanti will be supported by (i) a technical cooperation programme to help the bank develop financial products that meet the specific needs of women-led enterprises, and (ii) a risk sharing mechanism to stimulate lending to this group on a sustainable basis. It will benefit from synergies with the Women in Business Small Business Support component; which constitute the grant component of the TurWiB programme.

Transition Impact

The transition impact will stem from i) market expansion, ii) demonstration of new products and processes and iii) transfer of skills.

Market Expansion: Market expansion will be achieved by increasing the availability of financing to women-owned and women-managed SMEs in Turkey, where gender gaps in access to finance
remain large.

Demonstration of New Products: The Facility and the Programme in general are expected to demonstrate that financing WiB SMEs through the introduction of new products and processes
tailored to cater to their needs is not only commercially viable and profitable, but also scalable and replicable.

Transfer of Skills: Transition impact will also arise through transfer of skills by providing capacity building, product development and marketing outreach support.

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 50 million (in USD equivalent)

Total Project Cost

EUR 50,000,000.00

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

The facility will be supported by a comprehensive technical cooperation programme focusing on institutional capacity building, product development and marketing and outreach activities to
build Garanti's capacity to reach out to women-led SMEs. The overall objective of the technical cooperation will be to support Garanti in the process of better understanding the financial needs of
the women-led SME segment, and enable it to develop adequate customer information systems, optimise its lending procedures, and develop and market products and services to respond to the
segment needs. The technical cooperation for the programme will be jointly funded by the EU's Instrument for Pre-Accession Assistance (IPA) and the Turkish Ministry of Labour and Social
Security.

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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