Isbank - WiB Programme - DPR

Location:

Turkey

Project number:

47425

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Target board date:

25 Mar 2015

Status:

Signed

PSD disclosed:

27 Feb 2015

Translated version of this PSD: Turkish

Project Description

The EBRD is considering a provision of up to USD 55 million (or EUR equivalent) to Türkiye Is Bankasi A.S. (“Isbank”), a commercial bank incorporated in Turkey, to support women-led small and medium-sized enterprises (“SMEs”) in Turkey through sub-loans. The financing will be available to Isbank on the basis of the investment in rated notes issued under Isbank’s existing Diversified Payment Right (“DPR”) programme.
 
The project comes under the Turkey Women in Business (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 Isbank 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.


The Client

Isbank was established in 1924. As of 31 December 2014 the Bank was the largest bank in Turkey in terms of total loans, foreign currency-denominated loans, foreign currency-denominated deposits and shareholders’ equity and had the largest market shares of total assets, Turkish Lira-denominated loans, total deposits, Turkish Lira-denominated deposits, demand deposits and volume of debit cards transactions among private sector banks, each as measured on a bank-only basis.

The bank operates nationwide through a network of 1333 domestic branches. Isbank has long been focused on supporting SMEs and was the first Turkish bank to launch a “Small business Loans” program.
 

EBRD Finance

Funding of up to USD  55 million (or EUR equivalent)
 

Project Cost

Under the WiB Programme of EUR 300 million.

Environmental Impact

Categorised FI. The programme will lead to substantial social benefits by improving women–led business access to finance and know-how, and closing gender gaps in access to finance. Isbank is satisfactorily complying with PRs 2 & 9 under its existing exposures with the EBRD and the bank has regularly submitted satisfactory Annual Environmental and Social Reports. Işbank will be required to ensure that sub-loans under the facility comply with the requirements of PR9, the eligibility criteria for residential energy efficiency and submit Annual Environmental and Social Reports to the EBRD..

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 Isbank’s capacity to reach out to women-led SMEs. The overall objective of the technical cooperation will be to support Isbank 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

Banu Gülmedim Purut
Türkiye Is Bankasi A.Ş.
International Financial Institutions Division
Is Kuleleri Kule:1 Kat:25 34330 4.Levent - Istanbul

Phone: +90 212 316 28 12
Fax: +90 212 316 08 32
E-mail: Banu.Gulmedim@isbank.com.tr

 

Business opportunities

For business opportunities or procurement, contact the client company.

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