32915 - Odea Bank SME

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Summary of Investment Information

Project Number

32915

Company Name

ODEA BANK ANONIM SIRKETI

Date SPI Disclosed

May 28, 2013

Country

Turkiye

Region

Central Asia and Turkiye

Projected Board Date

Jun 28, 2013

Environmental Category

FI-2 - Limited

Status

Completed

Last Updated Date

Jun 12, 2021

Department

Global Industry, Financial Markets

Industry

Financial Markets

Previous Events

Approved : Sep 18, 2013
Signed : Sep 30, 2013
Invested : Oct 9, 2013

Sector

Commercial Banking - SME Finance

Project Description

Odea Bank A.S. (“Odea Bank” or the “Bank”) is a newly formed green-field bank in Turkey that obtained its banking license on October 2, 2012. Odea Bank commenced its operations with US$300 million as paid in equity from its parent, Bank Audi- Saradar Group. Odea Bank’s business model and strategy is covering all business segments as a universal bank.

IFC’s proposed investment aims to increase access to finance for small and medium enterprises (“SME”s) in Turkey through providing a senior loan to Odea Bank that targets SMEs.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	50.0
Equity

IFC's loan to the financial institution described in this SII is targeted for on-lending to the following sector(s):

Product Type	Use of Proceeds
Straight Senior Loan	Loans to SME Borrowers

IFC's Definitions of Targeted Sectors can be found here.

Development Impact

IFC''s SME credit line would further help the Bank to extend longer term loans to the SMEs and therefore provide sustainable financing to expand their businesses. As the primary beneficiaries of the proposed senior loan would be SMEs, who is lacking access to especially long term finance from banks, the proposed loan is also expected to have positive impacts in terms of job creation and preservation because SMEs are the major source of employment in Turkey.
Lastly, IFC''s partnering with Odeabank, a south-south investment, would have an important demonstration impact in terms of motivating other strong sponsors in the region to enter into the Turkish market

1) IFC is among the few Developmental Financial Institutions that provide long term finance at commerical terms to banks in Turkey which is crucial to maintain a sustainable level of maturity mismatch for the banks.
2) IFC, due to its global presence, is well placed and unique to support south-south investments across regions due to its vast experience working acros regions with reputable sponsors.
3) Through this proposed transaction, IFC will also provide guidance to the Bank to implement a social and environmental management system.

E&S Category Rationale / Risks and Mitigation

This project consists of a senior loan to Odea Bank in order to help the bank in building its SME loan portfolio. The highest exposure in Odea Bank''s SME portfolio is to wholesale trade, manufacturing industries and construction. The proposed investment has been categorized as FI-2 according to IFC’s Environmental and Social Review Procedure. For this project the client will be required to screen all SME loans against the IFC Exclusion List and the Turkish Environmental and Social laws and regulations.

Odea Bank has been newly set up, therefore there is no ESMS in place but is currently working with a consultant company for ESMS development and has designated staff members responsible for environmental and social issues. The main E&S issues of this investment relate to Odea Bank’s capacity to manage environmental and social risks associated with its investments in line with IFC’s policy requirements and screen all SME loans against IFC Exclusion List. Odea Bank will be required to develop and implement an Environmental and Social Management System (ESMS) that screens against the IFC Exclusion List and ensures compliance with national environmental and social laws. The Bank’s HR practices are in conformity with IFC''s PS2 on Labor and Working conditions.

Contacts

For Inquiries About the Project, Contact

Mr. Alpaslan Yurdagul
AGM
Odea Bank A.S.
Maslak Mahallesi Ahi Evran Caddesi No:11
Olive Plaza Kat:9 34398
Sariyer/Istanbul
Tel: +90 212 304 81 01
Fax: +90 212 304 84 45
http://www.odeabank.com.tr

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CAO receives and addresses complaints in accordance with the CAO Policy, which can be accessed at: https://www.cao-ombudsman.org/policies-guidelines.

This Summary of Investment Information (SII) is prepared by IFC to disclose a factual summary of the main elements of the potential investment. It also includes findings and recommendations related to environmental and social considerations regarding this potential investment. The purpose of the SII is to enhance the transparency of IFC’s activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this SII is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein. It is distributed in advance of IFC Board of Directors’ consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following SII is disclosed in accordance with IFC's Access to Information Policy (AIP) that went into effect on January 1, 2012.

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Task Title & Description	Anticipated Completion Date
Nominate officers
Establish SEMS
Staff Training

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