GarantiBank II - MidSEFF

Location:

Turkey

Project number:

47069

Business sector:

Depository Credit (banks)

Notice type:

Private

Environmental category:

FI

Target board date:

26 Nov 2014

Status:

Signed

PSD disclosed:

13 Oct 2014

Translated version of this PSD: Turkish

Project Description

The EBRD is considering a transaction consisting of up to EUR 100 million financing to GarantiBank.  

The project is to provide long-term financing to GarantiBank for on-lending to private sector borrowers for mid-size renewable energy (RE), waste-to-energy (WtE) and industrial energy efficiency (EE) investments.

The Facility is a Sub-project under mid-size energy efficiency, renewable energy and waste-to-energy investments (MidSEFF).  MidSEFF is a framework which initially included EUR 300 million senior loans/DPR investments and EUR 100 million of EBRD direct risk participation in select sub-projects. An extension consisting of EUR 225 million of senior loans / DPR investments and EUR 75 million direct risk participation in select sub-projects was approved in September 2011. In addition to this, the project is supported by a comprehensive TC package provided for the benefit of the sub-borrowers.

Transition Impact

The project generates transition impact by promoting the acceleration and scale-up of sustainable energy investments, including diversification of renewable energy technologies in Turkey.

The project will further increase financial intermediation for energy investments and fill the current gap in sustainable energy financing mechanisms in Turkey. Fostering rational energy utilisation and the acceleration and expansion of investments in renewable energy sources in Turkey will support a clean energy transition, by reducing reliance on fossil fuels and focusing on meeting energy needs in an environmentally sustainable manner.

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 984 domestic branches. Garantibank’s two main shareholders are BBVA (25.01% ownership) and Dogus Holding (24.23% ownership).

EBRD Finance

Up to EUR 100 million through the investment in the existing DPR programme of GarantiBank or on a senior unsecured loan basis.

Project Cost

Up to EUR 150 million.

Environmental Impact

Categorised FI: Garantibank is required to implement EBRD’s Performance Requirements 2 & 9 and adhere to the EBRD's Environmental and Social Exclusion and Referral Lists and submit Annual Environmental and Social Reports to the EBRD. An independent Project Consultant is in place to ensure that sub-loans comply with the national environmental, health and safety legislation requirements and the EBRD's eligibility criteria for hydropower and wind power projects.

Technical Cooperation

The Facility is currently supported by a comprehensive technical assistance programme to provide implementation support to participating banks and project sponsors. Funding for the TC programme is provided under the current EC IPA 2009 funding allocation to EBRD EE (TurSEFF and MidSEFF) operations.

The role of the Project Consultant (PC) under MidSEFF is to provide implementation support to sub-borrowers with respect to the technical, financial and environmental screening of sub-projects against the eligibility criteria set out in the Policy Statement and provide advice on the best available technologies (BATs). The PC team also provides assistance in establishing an efficient environmental and social management system to manage environmental and social risks and impacts associated to Sub-project activities;
In addition to the PC’s role to support the preparation and appraisal of sub-projects for MidSEFF, a separate Carbon Finance Consultant financed out of the EBRD Shareholders Special Fund has been appointed.

Company Contact

Oksana Pak
E-mail: pako@ebrd.com

 

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

Project Complaint Mechanism (PCM)

The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.