24974 - Ekim Turizm Ticaret ve Sanayi A.S. II

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Summary of Proposed Investment

Project Number

24974

Company Name

EKIM TURIZM TICARET VE SANAYI ANONIM SIRKETI

Date SPI Disclosed

Apr 26, 2006

Country

Turkiye

Industry

Financial Markets

Projected Board Date

May 31, 2006

Status

Completed

Sector

Rental Services

Department

Regional Industry FIG MCT

Environmental Category

C - No Impact

Previous Events

Approved : Jun 19, 2006
Signed : Jun 26, 2006
Invested : Dec 21, 2006

Project Description

The proposed project involves the structuring and implementation of an asset-backed securitization (ABS) program consisting of an immediate warehousing loan of up to Euro 40 million to and a credit enhancement facility (CEF) of up to Euro 20 million to Ekim Turizm Ticaret ve Sanayi A.S. (Intercity or the company), an existing IFC client and the leading fleet management and vehicle leasing company in Turkey. The lease receivables financed by the warehousing loan are expected to be used as assets to back the securitization issuances under the proposed ABS program. The objective of the project is to enable the company to diversify its funding base by accessing more competitive and sustainable term funding both in the domestic and international capital markets.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	41.65
Equity

Development Impact

The proposed project has a significant development impact:

It will contribute to financial sector deepening in Turkey through the development of the capital markets by setting a benchmark for independent companies to consider securitization as a viable financing option, a source of funding more readily availed only by Turkish banks until now.

The project will have a significant impact in alleviating a major constraint facing such leasing companies in Turkey – secure access to longer tenor financing in foreign currency.

It will assist the growth of operational leasing in Turkey and allow Intercity to increase its SME clientele.

With a second investment, IFC will continue to play a key institution-building role in the growth and transformation of an SME company into a larger, more viable business. By providing credit enhancement for the proposed securitization, IFC will assist the Company access the capital market, which it would not be able to on its own, thus helping it diversify its sources of financing, establish a secure funding base and expanding its operations more effectively.

IFC’s country strategy in Turkey is focused on investment support and technical assistance to the financial sector, access to longer term funding for the private sector, restructurings, recapitalization of portfolio companies, privatization, as well as supporting firms with good export prospects. In the financial sector, IFC is currently active in: (a) working with various financial intermediaries to strengthen their funding capacity and to use them to channel credit to the private sector; and (b) institution building and support for activities such as leasing, mortgage finance and contractual savings institutions.

Given its strong focus on supporting an SME business and promoting an important logistics support provider, the proposed project is a good fit with the IFC strategy for Turkey.

This is an environmental category C project according to IFC’s procedure for Environmental and Social Reviews of Projects. The previous transaction was a category B project, under which Intercity is required to meet both Turkish and IFC EHS requirements. The Company is currently meeting these requirements and has obtained the ISO 9001 (Quality) certification. The Company will be strongly encouraged to obtain ISO 14001 (Environmental Management) and OHSAS 18001 (Occupational Health and Safety) certifications.
Location of environmental documents In locally affected community

Contacts

For Inquiries About the Project, Contact

Vural Ak, General Manager
Ekim Turizm Ticaret ve Sanayi A.S.
Dudullu Organize Sanayi Bolgesi, 3. Cadde, G-131 Sokak, No: 26
34775 Yukari Dudullu
Istanbul / TURKEY

+90 (216) 314 09 50
+90 (216) 314 07 66

This Summary of Project Information (SPI) is prepared and distributed to the public in advance of the IFC Board of Directors' consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC's activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only. The following SPI is disclosed in accordance with IFC's Disclosure of Information Policy that went into effect September 1998.

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.

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