The Bank is owned 100% by TEB Mali A.S., a financial holding company incorporated in Turkey, held 50% by Colakoglu Group (a Turkish industrial group in financially strong standing operating in metal, transportation, logistics); and, 50% by BNP Paribas. 85% of the assets of TEB Mali A.S. is comprised of TEB A.S., IFC’s portfolio client since 1996.

The proposed IFC investment is a C loan (subordinated loan) of up to EUR7 million for IFC’s own account in the form of Tier II capital to be structured in line with local banking regulations.

8.88 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	8.88
Equity

* These investment figures are indicative

TEB Sh. A. is headquartered in Pristina having 18 branches across the Republic of Kosovo. Investments can be made throughout the country.

IFC's main role lies in facilitating the development of Kosovo's financial sector through introducing a subordinated loan in the form of Tier II capital. This would help diversify the funding base of the Bank and set as a benchmark for others to raise funding in the form of Tier II capital which is highly effective to increase lending as it leverages the balance sheet. Furthermore, by sharing IFC's global knowledge and expertise in the financial markets, IFC would help TEB Sh. A to strengthen its business strategy and implement best industry practices in a nascent market. The Project will generate a range of social and economic benefits, including economic growth and employment creation, as well as financial deepening with services and products tailored to the SMEs.

IFC's additionality in this project stems from the provision of medium term funding not available in the local markets for the SME industry. IFC's support would be in the form of a Tier II capital, which is currently not available from other private resources, to leverage the Bank's increase in its SME lending. Lastly, by partnering with TEB Sh. A., IFC would introduce best practices in environmental and social management.

This project has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure.

During appraisal, IFC will analyze the FI portfolio, and the activities proposed to be supported with IFC financing for types of transactions, size, tenor and industry sectors and determine the Applicable Performance Requirements, if any, that would include a combination of:
· The IFC FI Exclusion List(s) and/or
· The applicable National Social and Environmental Laws and regulations

IFC will also appraise the FI''s labor practices according to the IFC’s Performance Standards 2: Labor and Working Conditions. IFC will also review, if required, the capacity of the FI to manage social and environmental risks and to establish and maintain a Social & Environmental Management System (SEMS). If required, IFC will suggest Supplemental Actions to address any gaps in the SEMS.

Based on the review, the project will be required to:
· Develop an, or upgrade, if necessary, any existing Social & Environmental Management System (SEMS), prior to disbursement to the satisfaction of IFC
· Identify responsible, qualified persons to manage and implement the SEMS
· Commit to implement the SEMS, to ensure that its investments/activities supported by IFC financing are in compliance with the Applicable Performance Requirements
· Submit a periodic report to IFC as per a format to be provided by IFC.