Isbank - MidSEFF III

Location:

Turkey

Project number:

48568

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Target board date:

06 Jul 2016

Status:

Signed

PSD disclosed:

14 Dec 2016

Translated version of this PSD: Turkish

Project Description

The EBRD has approved a USD 55 million loan to Turkiye Is Bankasi A.S. ("Isbank") under the Turkey Mid-Size Sustainable Energy Financing Facility III (MidSEFF III) for on-lending to private sector borrowers for renewable energy (RE) and resource efficiency (ResE) investments. This is the third transaction with Isbank under MidSEFF which builds on Isbank's solid track record in implementation of the sustainable energy financing facilities successfully launched by the EBRD in Turkey. 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.

Project Objectives

MidSEFF III builds on the success of MidSEFF & MidSEFF II and is aimed at i) increasing financing intermediation for RE and ResE investments to fill these sectors' remaining financing gaps in Turkey, ii) improving the Private Financial Intermediaries (PFIs) skills in technical assessment of a broader set of technologies, and iii) increasing the PFIs' knowledge of relevant EU environmental & social requirements and standards in assessing mid-size RE and ResE investments.

Transition Impact

MidSEFF III aims to make a significant transformational impact in three critical areas in addressing climate change challenges in Turkey by (i) accelerating the pace of investments in RE and ResE technologies, supporting a clean energy transition by reducing reliance on fossil fuels in an environmentally sustainable manner, (ii) upgrading from the local environmental standards for sustainable energy projects and aligning those with the EBRD Environmental and Social Policy and Performance Requirements and relevant EU standards, and by (iii) increasing private sector involvement in the development and financing of mid-size sustainable energy investments by applying market-based mechanisms such as carbon markets.

Client Information

TURKIYE IS BANKASI AS

Isbank is the largest private bank in Turkey by total assets, deposits and loans. As of June 2016, Isbank had total assets of €92.0 billion and capital of €11.0 billion. Isbank has an unparalleled regional branch network among private banks with 1,354 domestic branches and 23 foreign branches. Isbank is currently rated BBB- (negative) by Fitch (August 2016), BB (negative) by Standard and Poor's ("S&P", July 2016) and Ba1 (stable) by Moody's (September 2016).

EBRD Finance Summary

EUR 51,854,995.00

Funding of up to USD 55 million

Total Project Cost

EUR 51,854,995.00

Total funding of up to USD 55 million.

Environmental and Social Summary

Categorised FI. Isbank will be required to comply with the EBRD's Performance Requirements ("PRs") 2, 4 and 9 and submit Annual Environmental and Social Reports to the Bank. Isbank will also be required to ensure that sub-loans under the facilities comply with the requirements of PR9 and submit Annual Environmental and Social Reports to the EBRD. An independent Project Consultant will be in place to ensure that renewable energy and resource efficiency sub-loans comply with the national environmental, health, safety and labour requirements and the EBRD's eligibility criteria for small hydropower projects and wind power projects.

Technical Cooperation

MidSEFF III is supported by a comprehensive TC support programme in the amount of €1.9 million provided by the European Union under the action entitled "Enhancement of the Turkish Energy Sector in line with EU Energy Strategies".

Company Contact Information

Banu Gülmedim Purut
Banu.Gulmedim@isbank.com.tr
+90 212 316 28 12
+90 212 316 08 32
http://www.isbank.com.tr/EN/home/Pages/home.aspx

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.