Garantibank - SME Financing Facility

Location:

Turkey

Project number:

45705

Business sector:

Notice type:

Private

Environmental category:

FI

Target board date:

17 Sep 2013

Status:

Signed

PSD disclosed:

20 Aug 2013

Translated version of this PSD: Turkish

Project Description

The EBRD is considering providing Garantibank a loan secured by current and future remittances of up to EUR 50 million to on-lend to micro, small and medium enterprises (MSMEs) in the lesser developed regions of Turkey. The transaction will provide long term financing to GarantiBank to help it prioritise the MSMEs operating in the lesser developed regions through its wide branch network.

Transition Impact

Transition impact will arise through market expansion which will be achieved by supporting MSMEs in the lesser developed regions of Turkey. Where possible, the potential linkages with the MSME clusters in the target regions will be explored.

The Client

Garantibank is the third-largest bank in Turkey and the second-largest privately-owned bank. It is a universal bank and serves 11 million customers in the corporate, commercial, SME and consumer segments, offering fully integrated financial services through 961 branches. Garantibank’s two main shareholders are BBVA (25.01% ownership) and Dogus Holding (24.23% ownership).

EBRD Finance

EBRD will invest in the rated senior bond notes issued under GarantiBank’s existing Diversified Payment Rights (“DPR”) programme denominated in either EUR or USD.

Project Cost

Up to EUR 50 million to be provided in either EUR or USD.

Environmental Impact

Categorised FI: Garantibank is required to implement EBRD’s Performance Requirements 2 and 9 and report to the Bank annually on the implementation of the PRs.

Technical Cooperation

In line with SBS strategy, efforts will be made to link the proposed transaction with assistance from the SBS Team through both EGP and BAS Support and with SDA’s (Sector Development Activity) and MDA’s (Market Development Activity) to MSMEs. Garantibank has benefited from previous and ongoing TC assignments covering frameworks such as MSME, MidSEFF, TurSEFF and TurAFF. These were supported by several donors, including the Clean Technology Fund, the US Government and the EU. The EBRD is also supporting Garanti's joint efforts with academic institutions to increase the financial and managerial literacy and capacity of women entrepreneurs.

Company Contact

Gencay Gedik
Levent,
Nispetiye Mah. Aytar Cad. No:2
34340 Besiktas,
Istanbul,
Turkey

E-mail : gencayge@garanti.com.tr
Phone number : 0090 212 318 17 33
Fax number : 0090 212 216 62 17
Website : www.garanti.com.tr

 

Business opportunities

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