Summary of Proposed Investment
Project Number
7029
Company Name
TURKIYE GARANTI BANKASI A.S.
Date SPI Disclosed
Apr 15, 1997
Country
Turkiye
Industry
Financial Markets
Status
Completed
Sector
Commercial Banking - General
Department
Regional Industry FIG MCT
Environmental Category
FI
Previous Events
Approved : Jul 18, 1997
Signed : Sep 23, 1997
Invested : Oct 1, 1997
Project Description
Summary Of Project Information (SPI)
| Project Name | Turkey-Garanti Bank Securitized Financing |
| Region | Europe |
| Sector |
Projected Board DateMay 31, 1997
Company NameTurkiye Garanti Bankasi A.S.
Technical Partner and/or Major Shareholders
Garanti Bank is majority owned by the Dogus Group, a diversified Turkish conglomerate with significant interests in the financial sector. The Group is also active in construction, manufacturing, food processing, tourism and media.
Project Cost Including proposed IFC investment
US$119 million, including an IFC A Loan of up to US$15 million, an IFC B Loan of US$100 million (of which up to US$10 million may be for IFC’s own account) and an interest rate swap with loan equivalent exposure of up to US$4 million for IFC’s account.
Location of project and Description of site
The project involves the provision of medium-term funding to Garanti Bank for on-lending to private sector companies located throughout Turkey. Garanti Bank is headquartered in Istanbul.
Description of Company and Purpose of Project
The project involves the structuring of a financing package which will enable IFC to introduce a new mechanism for the provision of medium term funding to Turkish enterprises. The mechansim involves the securitization of the IFC B Loan in order to tap a new investor base--US institutional investors such as insurance companies and pension funds. IFC has previously used this structure for a limited number of clients in Latin America. Garanti Bank, one of Turkey’s larger private sector banks, is particularly well-suited for this transaction due to its excellent reputation both within Turkey and abroad. The Bank will on-lend the proceeds of the IFC financing package to Turkish private sector companies for their modernization and expansion purposes and for pre-export finance.
Environmental Category and Issues
This is a category FI project according to IFC’s environmental review procedure. For relevant operations, Garanti Bank will be required to undertake an environmental review of eligible borrower’s environmental performance and each sub-project’s compliance with the Government of Turkey’s environmental health and safety laws, regulations and standards as well as applicable World Bank policies and guidelines. In addition, IFC will assess Garanti Bank’s capability to carry out environmental reviews.
| Date SPI sent to PIC | April 15, 1997 |
For Additional Information contact: Corporate Relations Unit -
telephone: (202) 473-7711
facsimile: (202) 974-4384
Sponsor / Cost / Location
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