43728 - YKL SME COVID

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Summary of Investment Information

Project Number

43728

Company Name

YAPI KREDI FINANSAL KIRALAMA ANONIM ORTAKLIGI

Date SPI Disclosed

May 21, 2020

Country

Turkiye

Region

Central Asia and Turkiye

Projected Board Date

Jun 22, 2020

Environmental Category

FI-2 - Limited

Status

Completed

Last Updated Date

Feb 11, 2026

Department

Regional Industry FIG MCT

Industry

Financial Markets

Previous Events

Approved : Jun 26, 2020
Signed : Jul 8, 2020
Invested : Jul 15, 2020

Sector

Leasing Services

Project Description

The project is a senior unsecured loan of up to US$50 million to Yapi Kredi Finansal Kiralama A.O (“YKL” or the “Company”), an existing IFC client in Turkey. The proposed project will enable the Company to provide long-term financing to sustain the operations of small and medium enterprises (SMEs) affected by the Covid-19 pandemic on the economy and continue supporting SME clients engaged in critical sectors during the outbreak, such as healthcare, production of medical equipment, food production, packaging, e-commerce and logistics . Furthermore, some portion of the loan proceeds may also be used to support climate-related initiatives of the affected SMEs.

Established in 1987, YKL is a fully owned subsidiary (99.99%) of Yapi Kredi Bank (“YKB”), the third largest private bank in Turkey by assets. The Company benefits from the extensive network of YKB, its client base, underwriting procedures and risk management policies.

Associated Advisory Engagement

N/A

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

The potential development impact of the project is composed of the following: i) increased access to finance for SMEs negatively affected by the Covid-19 economic downturn; ii) provide financing support to SMEs operating in key sectors during the Covid-19 outbreak, including healthcare, production of medical equipment, food production, packaging, e-commerce, and logistics; and, iii) increased access to climate finance for affected SMEs.

Financial additionality: The proposed 5-year loan will provide YKL with a longer-term funding, otherwise scarce in the market due to the economic downturn, enabling it increase access to SMEs affected by the outbreak, while improving its financial sustainability. Non-financial additionality: Job preservation - Supporting the private sector will help maintain employment in the Turkish economy.

E&S Category Rationale / Risks and Mitigation

The project with Yapi Kredi Leasing involves a senior loan to be used for on-lending to SMEs, mainly those affected by the Covid-19 pandemic and operating in critical sectors such as healthcare, production of medical equipment, food production, packaging, e-commerce and logistics; and may be for supporting climate-related initiatives of the affected SMEs. Overall E&S risks associated with these transactions is considered as medium and therefore, the project has been categorized as FI-2 in accordance with IFC’s Sustainability Policy. IFC fund will not be used to support any coal-related activities, or higher risk business activities that may include: a) involuntary resettlement, b) risk of adverse impacts on indigenous peoples, c) significant risks to or impacts on the environment, community health and safety, biodiversity, cultural heritage or d) significant occupational health and safety risks. For this investment, the client will be required to screen SMEs loans against the IFC Exclusion List, and Turkish E&S laws and regulations. In addition, Yapi Kredi Leasing will continue to be in compliance with Life & Fire safety requirements and the requirements of IFC’s Performance Standard 2 on Labor and Working conditions.

The main E&S risks and impacts of this project will be the ability of Yapi Kredi Leasing to identify and manage E&S risks associated with the activities of its leases/projects in line with IFC’s applicable requirements.

Summary of Client Environmental and Social Management System (ESMS)

As an existing IFC’s client, Yapi Kredi Leasing has established an ESMS applied in line with IFC requirements and has built internal capacity to manage E&S risks of their investments Under this project, Yapi Kredi Leasing will be required to update its existing ESMS in compliance with applicable E&S requirements of this specific transaction.

Contacts

For Inquiries About the Project, Contact

Yapi Kredi Finansal Kiralama A.O.
Meltem Afacan
Treasury & Correspondent Relations Departmen .Manager
+90 (212) 339 90 52
meltem.afacan@ykleasing.com.tr
Buyukdere Caddesi Yapi Kredi Plaza A Blok K:9 Levent 34330 Besiktas/Istanbul
https://www.ykleasing.com.tr/en

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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
Staff Training	09/28/2020
Submit ESMS implementation records	10/28/2020
Upgrade ESMS in line with IFC's requirements	11/29/2020

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