Akbank, a subsidiary of Sabanci Group, is an existing IFC client. Akbank was founded by the Sabanci family in 1948. Citigroup acquired 20 percent of the Bank’s shares in January 2007. Currently, Sabanci Holding and Sabanci family control 51.37% of the bank shares. The remaining 28.63% is floated in the Istanbul Stock Exchange. Sabanci Group is one of the leading conglomerates in Turkey. The Sabanci Group is composed of 73 companies many of which are recognized market leaders in their respective sectors and 12 of which are listed on the Istanbul Stock Exchange. Sabanci Holding’s main business ventures are widely diversified, encompassing financial services, which include banking and insurance, as well as energy, retail, cement, automotive, tire and tire reinforcement materials, paper and packaging materials, information technology, tourism and international trading. With a 60.6% shareholding, Sabanci family is the major shareholder. The remaining 39.4% of the shares are publicly available as free float.

The proposed project is up to $300 million, of which IFC would consider investing up to $75 million from its own account.

75.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	75.0
Equity

* These investment figures are indicative

Akbank is headquartered in Istanbul. It has a wide geographical coverage throughout Turkey with its 879 branches. Investments can be made all across the country.

The project will provide long term funding that is not currently available in the market. The proceeds of the IFC financing will be used to on-lend to SMEs and/or sustainable energy financing projects in Turkey. The presence of IFC would mobilize other IFIs and commercial long term lending to the project.

This transaction will be the first issuance under its DPR program issued by a Turkish bank since the credit crisis started in September 2008. Consequently, it will have a demonstration effect and possibly attract private investors for this and potentially other DPR issuances.

This project has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure. Under an existing IFC project, Akbank is in the process of developing a Social & Environmental Management System (SEMS) to screen on-lending activities to SMEs against the IFC Exclusion List and applicable environmental and social national laws and regulations. IFC''s appraisal will focus on Akbank''s progress in developing and implementing the SEMS. If necessary, IFC will recommend enhancements to the SEMS to evaluate on-lending activities to Renewable Energy project against the IFC Performance Standards.