Summary of Proposed Investment
Project Number
11025
Company Name
TURK EKONOMI BANKASI ANONIM SIRKETI
Date SPI Disclosed
Nov 19, 2001
Country
Turkiye
Industry
Financial Markets
Projected Board Date
Dec 20, 2001
Status
Completed
Sector
Commercial Banking - General
Department
Global Industry, Financial Markets
Environmental Category
FI
Previous Events
Approved : Apr 1, 2002
Signed : Jul 17, 2002
Invested : Jul 24, 2002
Project Description
TEB had unconsolidated total assets of US$1.7 billion equivalent and US$110 million in shareholders’ equity as of end-March 2001. The main focus of the bank is to provide short-term trade finance to a select client base, which include multinationals and leading Turkish conglomerates. The bank also has a strong private banking business, treasury operations, asset management, and is developing its retail operations.
The project would be structured in two tranches. The first tranche, of up to US$15 million would be a subordinated convertible loan to further strengthen the balance sheet of TEB. The second tranche would be a syndicated three-year facility of up to US$20 million for IFC''s own account and up to US$80 million for the account of participant banks, depending on demand.
Through the project IFC intends to provide capital to the Turkish banking sector and provide finance to Turkish corporates for the purpose of working capital, investment and trade.
By investing in TEB, IFC would send an important signal of support to the Turkish banking system at a time when confidence is low and banking activity is severely constrained. Secondly, Turkish private corporates are constrained by lack of adequately priced finance, a sector which is critical to the recovery of Turkey from the current crisis.
The project would be structured in two tranches. The first tranche, of up to US$15 million would be a subordinated convertible loan to further strengthen the balance sheet of TEB. The second tranche would be a syndicated three-year facility of up to US$20 million for IFC''s own account and up to US$80 million for the account of participant banks, depending on demand.
Through the project IFC intends to provide capital to the Turkish banking sector and provide finance to Turkish corporates for the purpose of working capital, investment and trade.
By investing in TEB, IFC would send an important signal of support to the Turkish banking system at a time when confidence is low and banking activity is severely constrained. Secondly, Turkish private corporates are constrained by lack of adequately priced finance, a sector which is critical to the recovery of Turkey from the current crisis.
Sponsor / Cost / Location
Development Impact
Related ESRS/ERS
Contacts
For Inquiries About the Project, Contact
Mads Peter Zacho, Investment Officer
Email: mzacho@ifc.org
Email: mzacho@ifc.org