Summary of Proposed Investment
Project Number
9286
Company Name
QNB Bank AS
Date SPI Disclosed
Apr 15, 1999
Country
Turkiye
Industry
Financial Markets
Status
Completed
Sector
Commercial Banking - General
Department
Global Industry, Financial Markets
Environmental Category
FI
Previous Events
Approved : May 30, 1999
Signed : Mar 2, 2000
Invested : Mar 20, 2000
Project Description
Summary Of Project Information (SPI)
| Project Name: | Turkey: Finansbank |
Region:Central and Southern Europe
Sector:
Project No:009286
Projected Board Date:May 15, 1999
Company Name:Finansbank A.S.
Technical Partner and/or Major Shareholders
Mr. Husnu Ozyegin, an experienced banker and his family own some 64% of Finansbank through his family''s wholly owned companies Fiba Factoring, Fiba Holding and Fina Holding. Commercial Union Assurance Co Plc. of UK owns 5% and the remaining shares are held by the public.
Project Cost Including proposed IFC investment
Project cost. The project consists of a syndicated medium-term loan package to Finansbank of up to US$55 million. This includes a loan of up to US$20 million for IFC’s own account, and a US$35 million B Loan for the account of participants. Some of the loan for IFC''s own account could be convertible into equity in Finansbank. The B loan may be larger if market demand so warrants.
Location of project and Description of site
Finansbank is a medium-sized bank headquartered in Istanbul, with 65 branches across the country.
Description of Company and Purpose of Project
Finansbank is a commercial bank, lending primarily to medium-sized enterprises. Finansbank is a part of the Finansbank Group which offers financial services such as banking, leasing, brokerage, insurance, asset management and factoring through a variety of subsidiaries. Finansbank has subsidiary banks located in Switzerland, Holland and Russia which offer mainly trade related financial services to Turkish and foreign corporations. The project consists of a US$55 million loan package for onlending to small-and medium size enterprises for modernization and/or expansion needs. 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 sector, through the imposition of stringent covenants. The loans would also lengthen the average maturity of the funding base of Finansbank.
Environmental Category and Issues
This is an environmental review category (FI) Tier 2 project. Finansbank will be required to undertake an environmental review of each sub-project. In addition, IFC will assess the capability of Finansbank to carry out environmental reviews.
The is from the InfoShop.
| Date SPI sent to InfoShop: | April 15, 1999 |
“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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