Yapi Kredi Bank - TuREEFF

Location:

Turkey

Project number:

46108

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Target board date:

05 Jul 2017

Status:

Disbursing

PSD disclosed:

28 Feb 2018

Translated version of this PSD: Turkish

Project Description

Investment of USD 60 million, in TRY, in a private placement mortgage covered bond issuance by Yapi ve Kred Bankasi AS (YKB). It is complemented by USD 15 million of financing provided by the Clean Technology Fund (CTF) which is one of the two Trust Funds under the Climate Investment Fund (CIF) Special Fund, taking total aggregate investment to USD 75 million equivalent. The CIF was established to provide scaled up financing in order to contribute to the demonstration, deployment and transfer of low carbon technologies with significant potential for long-term greenhouse gas emission savings.

The EBRD's investment is backed by a portfolio of residential mortgages and was rated Baa1 by Moody's.

Project Objectives

The transaction supports YKB in accessing medium- to long-term funding by using a Covered Bond instrument collateralised by a pool of residential mortgage loans.

The proceeds will increase financial intermediation and financing of rational energy utilisation investments and assist the households in Turkey in mitigating increasing energy prices and high energy intensity under the EBRD's Turkey Residential Energy Efficiency Financing Facility (TuREEFF). TuREEFF aims to increase financial intermediation and financing of rational energy utilisation investments and assist the households in Turkey in mitigating increasing energy prices and high energy intensity. TuREEFF will increase public awareness in Turkey about the benefits of sustainable energy investment in the residential sector.

Transition Impact

Under the TuREEFF programme, transition impact will stem from (i) Demonstration effect: The facility will help to leverage the scope of the existing mortgage products to generate transition impact through the banking products; (2) Expansion of sustainable energy markets through increased penetration of low-carbon technologies: the facility promotes penetration of energy efficient and renewable energy technologies above the current market practice through stimulating demand and market awareness campaigns; (3) Transfer of skills: by providing capacity building through training of loan offers from various departments, product development and marketing outreach support.

Client Information

YAPI VE KREDI BANKASI AS BONDS I

YKB (rated Baa2/BB/BBB- from Moody's, S&P and Fitch, respectively) is the fifth largest bank in Turkey with market share of 9.6 per cent by customer deposits.  Currently, Koc Financial Services A.S. (KFS) holds 81.8 per cent of YKB's outstanding shares, while the remaining 18.2 per cent are listed on Borsa Istanbul. KFS is a 50-50 Joint Venture between Turkish Koc Holdings and UniCredit Bank Austria, which is ultimately owned by UniCredit S.p.A.

EBRD Finance Summary

TRY 229,050,000 investment in a private placement under YKB's Global Covered Bond Programme.

Total Project Cost

USD 75,480,041.00

Environmental and Social Summary

Categorised FI (2014) YKB has been satisfactorily implementing the EBRD's Environmental and Social (E&S) requirements to date under the existing exposures and is in compliance with the EBRD's Performance Requirements (PRS) 2, 4 and 9. YKB will be required to continue to comply with the PRs, implement the EBRD's E&S risk management procedures for mortgage lending, ensure that sub-loans under TUREEFF comply with the eligibility criteria for residential energy efficiency and submit annual environmental and social reports to the Bank.

Technical Cooperation

TuREEFF is supported by a comprehensive Technical Cooperation (TC) programme provided by the EU Instrument for Pre-Accession 2014 funds and the Clean Technology Fund. The focus of the TC programme lies on institutional capacity building, product development and marketing and outreach activities to build YKB's capacity to increase lending to energy efficiency and small scale renewable energy projects.

Company Contact Information

Tules Akinci, Head of Debt Capital Markets, Financial Institutions
tules.akinci@yapikredi.com.tr
+90 212 3397819
+90 212 3396060
https://www.yapikredi.com.tr/
Yapi ve Kredi Bankasi A.S. - Head Office Buyukdere Cad. Yapi Kredi Plaza D Block, Levent 34330
Istanbul/Turkey

 

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