LBT Varlik Yonetim A.S. Bond

Location:

Turkey

Project number:

45502

Business sector:

Insurance, Pension, Mutual Funds

Notice type:

Private

Environmental category:

FI

Approval date:

16 Oct 2013

Status:

Complete

PSD disclosed:

17 Oct 2013

Translated version of this PSD: Turkish

Project Description

The EBRD is considering an investment of up to TRY120 million (EUR 48 million) in the local currency-denominated unsecured bond issuance programme by LBT Varlik Yonetim A.S. of up to TRY 600 million.

The EBRD financing will be used to finance the acquisition of portfolios of non-performing loans (NPLs) that are expected to be sold by Turkish banks.

Transition Impact

The transition impact potential derives from the demonstration of new financing for non-bank issuers, whose issuances have been restricted by a number of factors relating to supply and demand and the development of the local capital market in Turkey.

The investment programme will demonstrate that an issuer can incrementally broaden its investor base and extend its yield curve by establishing a continuity of issuance.

The transaction will also provide the much needed capital for the one of the leading Turkish NPL asset management companies, to take NPLs off of banks’ balance sheets. This is expected to have a beneficial impact on banks’ balance sheets, introduce further efficiency in the NPL market and continue setting of standards of reputable and responsible resolution of NPLs in the country.

The Client

The Company is one of the leading NPL asset managers in Turkey, focusing on acquisition and resolution of non-performing loans and receivables from originating financial institutions in the country.

EBRD Finance

Up to TRY 120 million in bonds issued by the by Company.

Project Cost

Up to TRY 200 million initially, increasing up to TRY 600 million with subsequent future issuance.

Environmental Impact

Categorised FI. LBT will be required to comply with the EBRD's Performance Requirements 2 and 9 and submit annual environmental and social reports to the EBRD. The Company's NPL collection procedures are implemented based on the UK and US best practices.

Technical Cooperation

None.

Company Contact

Mr. Ilker Yoney, Investments Director

Email: ilker.yoney@lbtvarlik.com.tr
Tel: +90 212 355 8012

 

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

Share this page: