35827 - Odeabank Green Mortgages

Who We Are
Who We Are

IFC is the largest global development institution focused on the private sector in developing countries. By encouraging growth, IFC advances economic development, creates jobs and improves the lives of people.
More About Us
About IFC

Our Leadership

Development Partners
Accountability

Learn more about accountability
Annual Report

Download the Report
What We Do
What We Do

IFC advances economic development and improves the lives of people by encouraging the growth of the private sector in developing countries. We achieve this by investing in impactful projects, mobilizing other investors, and sharing expertise.
What We Do Overview
SOLUTIONS

Our products and services
OUR PRIORITIES

Climate Business

Fragile & Conflict Afflicted Situations

Gender

Mobilizing Private Capital

Sustainability
SECTORS & EXPERTISE

Agribusiness & Forestry

Creative Industries

Education

Financial Institutions

Funds

Health

Infrastructure

Manufacturing

Public-Private Partnerships

Tourism, Retail & Property

Trade & Supply Chain Finance

Venture Capital

Working Upstream
Where We Work
Where We Work

As the largest global development institution focused on the private sector, IFC operates in more than 100 countries around the globe. We apply lessons learned in one region to solve problems in another.
Overview
By Region

Africa

East Asia and Pacific

Europe

Latin America and the Caribbean

Middle East and Central Asia

South Asia
Our Impact
Our Impact

Our impact improves lives. IFC brings a clear set of advantages to the world’s most challenging markets. Including a history of innovation, a global mandate, and a determination to achieve measurable development impact.
Our Impact Overview
PRINCIPLES & MEASUREMENT

Impact Investing at IFC

Measuring and Monitoring (AIMM)

Evaluation

Sustainable Development Goals (SDGs)

Owned by 186 member countries and consistently rated AAA/Aaa. IFC aims to achieve our mission of promoting development by providing debt and equity to the private sector, through a range of benchmark and bespoke products.

For Partners

For Investors

Get in Touch

Summary of Investment Information

Project Number

35827

Company Name

ODEA BANK ANONIM SIRKETI

Date SPI Disclosed

Mar 9, 2015

Country

Turkiye

Region

Central Asia and Turkiye

Projected Board Date

Apr 15, 2015

Environmental Category

FI-2 - Limited

Status

Completed

Last Updated Date

Feb 25, 2023

Department

Global Industry, Financial Markets

Industry

Financial Markets

Previous Events

Approved : Dec 1, 2016
Signed : May 26, 2015
Invested : Jun 23, 2015

Sector

Commercial Banking - General

Project Description

Odea Bank A.S. (“Odea Bank” or the “Bank”), founded in 2012, has already become number thirteen in the Turkish market with a loan book of around US$7.7 billion and total assets of around US$11 billion as of end of December 2014.

The proceeds of IFC’s investment would finance eligible green mortgages in Turkey. IFC will have its eligibility criteria in the project agreement which would allow financing of commercial real estate for up to 30% and the remaining would be used to finance retail mortgage portfolio.

Associated Advisory Engagement

The proposed project will be accompanied by an advisory services project (project ID: 600641) objective of which is to amplify the effects of IFC investment in Odea Bank (and other banks that would receive IFC financing under IFC’s Sustainable Energy Finance II Program) by raising awareness throughout Turkey about benefits of living in green buildings among prospective homeowners and other key market stakeholders. This combination of investment and advisory services is expected to lead to dedicated supply of and increased demand for green mortgage financing, thus contributing to sustainability of this market.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	44.50
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	Housing Finance
Straight Senior Loan	Housing Finance

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

Development Impact

The Project''s development impact is expected to be high, as it generates a range of environmental and economic benefits related to the development of green buildings finance and related investments. Specifically, the Project would:
(i) develop sustainable energy investments across all building construction sectors;
(ii) improve the competitiveness of the Turkish economy by increasing the number of green buildings, end-users and green mortgage lenders;
(iii) improve the local as well as the global environment through reduced emissions of greenhouse gases and other conventional pollutants and reduce the country''s dependence on imports of fossil fuels and natural gas. Total GHG emmisions savings are expected to be 59,153 tonnes/project life; and
(iv) improve quality of life through reduced pollution and healthier living conditions, including decreasing of the operational costs of apartments in green buildings

Long-term funding in Turkey continues to be scarce. IFC''s loan being long-term will allow Odea Bank to meet the long-term funding needs associated with sustainable energy projects.
Expansion to climate mitigation: Providing support specifically targeted to green buildings will improve energy intensity and mitigate climate change for the Turkish building sector
Standard Setting: Given IFC''s expertise in environmental and social standards, IFC is well placed to help Odea Bank to review and update its E&S policies and procedures.
Standard Setting: Given IFC''s expertise in environmental and social standards, IFC is well placed to help Odea Bank to review and update its E&S policies and procedures.

Indicator	Metrics	Comments	Calendar Year 2022	Calendar Year 2023	Calendar Year 2024
CORE - E and S Management Systems (Y/N)	Compliance/Enhancement		Not Available	Not Available	Not Available

E&S Category Rationale / Risks and Mitigation

This project, which consists of a senior loan of up to US$175 million to finance eligible green mortgages to Odea Bank, an existing IFC client in Turkey, has been classified as a Category FI-2 project (as the eligibility criteria in the project agreement would allow financing of commercial real estate which is considered as medium E&S risk) according to IFC’s Environmental and Social Review Procedure.

Contacts

For Inquiries About the Project, Contact

Ms. Estel Gurdogan
Director
Odea Bank A.S.
Levent 199, Buyukdere Caddesi No: 199
Kat: 33-39
34394 Sisli/Istanbul
Tel: +90 212 304 85 20
Fax: +90 212 304 84 45
http://www.odeabank.com.tr

For Inquiries and Comments About IFC, Contact

General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster

IFC supports its clients in addressing environmental and social issues arising from their business activities by requiring its real sector clients to set up and administer appropriate grievance mechanisms and/or procedures to address complaints from Affected Communities in relation to environmental and social issues arising from IFC's clients' business activities. Since 2012, IFC's Financial Intermediary clients applying the Performance Standards are required to develop External Communications Mechanisms to receive and review inquiries or complaints from any interested party regarding the E&S risks and impacts of their operations.

For IFC projects that are active or under consideration, individual(s), or their authorized representative(s), who allege they have been or will be adversely affected by E&S risks or impacts arising from IFC's clients' business activities, may submit a complaint to IFC directly for consideration. When receiving an E&S complaint, IFC engages with complainants and works with its clients to find solutions to E&S concerns as quickly and efficiently as possible.

Complaints can be submitted to IFC online at www.ifc.org/escomplaints or by email to EScomplaints@ifc.org.

IFC complaint response is separate from and complementary to IFC’s clients’ project level grievance mechanisms and IFC’s Independent Accountability Mechanism (CAO). Lodging a complaint directly with IFC does not, at any time, restrict access to CAO.

Affected communities have unrestricted access to the Compliance Advisor Ombudsman (CAO), the independent accountability mechanism for IFC and MIGA. CAO facilitates the resolution of complaints related to IFC and MIGA projects and sub-projects, undertakes reviews of IFC’s and MIGA’s environmental and social compliance, fosters public accountability for their commitments, and enhances the environmental and social performance of IFC and MIGA.

Independent of IFC and MIGA management and reporting directly to the IFC and MIGA Boards of Executive Directors, CAO helps resolve issues raised about the environmental and social impacts of projects through a neutral, collaborative, problem-solving approach via its Dispute Resolution function. It also reviews IFC’s and MIGA’s compliance with environmental and social policies, assesses related harm, and recommends remedial actions through its Compliance function. Additionally, CAO provides advice to IFC, MIGA, and their Boards to enhance environmental and social sustainability performance and minimize the risk of harm.

Complaints may relate to environmental and social harm regarding any aspect of the planning, implementation, or impact of a project or sub-project, and can be made by any individual, group, community, entity, or other party affected or likely to be affected by the environmental or social impacts of an IFC- or MIGA-financed business activity.

Complaints can be submitted by any of the following methods:

Online form: available at https://www.cao-ombudsman.org/
Mail/Hand Delivery to: 2121 Pennsylvania Avenue, NW, Washington, DC 20433, USA
Voice mail: +1 202 458 1973
Email: cao@worldbankgroup.org
SMS, WhatsApp, Telegram, and Signal: +1 202 650 2627

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.

The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.

Task Title & Description	Anticipated Completion Date
Develop guidelines	05/15/2015
Staff Training	05/15/2015
Supplementary ESMS Forms; i.e.; due dilligence examples	05/15/2015

Projects

Summary of Investment Information

Project Description

Associated Advisory Engagement

Sponsor / Cost / Location

Development Impact

E&S Category Rationale / Risks and Mitigation

Similar Projects

Contacts

Projects

Summary of Investment Information

Project Description

Associated Advisory Engagement

Sponsor / Cost / Location

Project Sponsor and Major Shareholders of Project Company

Total Project Cost and Amount and Nature of IFC's Investment

IFC's Investment as Approved by the Board

FIG Use of Proceeds/Beneficiaries

Location of Project and Description of Site

Development Impact

Anticipated Impact Measurement & Monitoring (AIMM) Assessment

IFC's Role and Additionality

Development Results

E&S Category Rationale / Risks and Mitigation

Environmental & Social Categorization Rationale / Key Risks & Potential Impacts

Environmental & Social Management System (ESMS)

Mitigation Measures / Environmental & Social Action Plan (ESAP)

Press-Release

Related Environmental Document

Similar Projects

Contacts

Information on E&S Complaints and Grievance Mechanisms

Disclaimer