Summary of Proposed Investment
Project Number
9106
Company Name
TURK EKONOMI BANKASI ANONIM SIRKETI
Date SPI Disclosed
Aug 26, 1998
Country
Turkiye
Industry
Financial Markets
Status
Completed
Sector
Commercial Banking - General
Department
Global Industry, Financial Markets
Environmental Category
FI
Previous Events
Approved : Dec 7, 1998
Signed : May 13, 1999
Invested : May 25, 1999
Project Description
Summary Of Project Information (SPI)
| Project Name | Turkey-TEB-II |
| Region | Europe |
| Sector |
Projected Board Date
September 30, 1998
Company NameTurk Ekonomi Bankasi
Technical Partner and/or Major Shareholders
The Colakoglu Group fully owns and controls TEB.
Project Cost Including proposed IFC investment
Project cost - US$45 million. The project consists of a US$45 million syndicated medium-term loan package to TEB and its leasing subsidiary. This includes a US$15 million A Loan for IFC’s account, and a US$25 million B Loan for the account of participants, both to TEB. A C Loan of US$5 million, also for IFC''s account, would be lent jointly to the Bank and to TEB Leasing (TEBL), TEB''s subsidiary, in order to provide leasing services to small- and medium-sized enterprises (SMEs).
Location of project and Description of site
TEB is a medium-sized bank headquartered in Istanbul, with 34 branches across the country.
Description of Company and Purpose of Project
TEB is a commercial bank, lending primarily to medium-sized enterprises. TEB and TEBL are part of the Colakoglu Group, one of Turkey''s largest conglomerates, with interests including financial services, steel production, shipping container production, power generation and shipping. The project would have the dual objectives of easing the medium-term funding constraint of private sector enterprises, including for SMEs, and at the same time supporting the institutional development of the Turkish banking and leasing sectors, through the imposition of stringent covenants. The loans would also lengthen the average maturity of the funding base of TEB and TEBL.
Environmental Category and Issues
This is an environmental review category (FI) Tier 2 project. TEB and TEBL will be required to undertake an environmental review of each sub-project. In addition, IFC will assess the capability of TEB and TEBL to carry out environmental reviews.
| Date SPI sent to InfoShop | August 26, 1998 |
“This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporation’s Board of Directors. It is provided for the purpose of enhancing the transparency of IFC’s activities and should not be construed as presuming the outcome of IFC Board consideration.”
For Additional Information contact: Corporate Relations Unit -
telephone: (202) 473-7711
facsimile: (202) 974-4384
Sponsor / Cost / Location
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