Istanbul, Turkey, October 1, 2003—The
International Finance Corporation, the private sector arm of the World
Bank Group, has signed an agreement to provide a $100 million financing
facility to Akbank, the oldest and largest private sector bank in Turkey.
The facility consists of a $100 million syndicated loan, or B-loan,
in which 14 commercial banks have participated. IFC also provided from
its own account a direct long-term project finance facility for $55 million
that was arranged previously. With the addition of a bond offering in international
markets that IFC has yet to launch, the IFC facility is expected to reach
$200–260 million when all financing is completed.
IFC’s participation in this transaction provided the risk mitigation necessary
to attract banks to longer-term financing in Turkey. “This transaction
is very significant for Turkey since it is the first time a domestic financial
institution has received an unsecured syndicated loan with a tenor exceeding
one year since another IFC transaction was completed in March 2000,” said
IFC Vice President, Finance, Nina Shapiro. “This syndication, which was
oversubscribed by 100 percent, shows how B-loans can be effective in different
IFC is committed to supporting Turkish financial institutions at a time
when key sector reforms are beginning to take root and gaining wider acceptance
in the international community. “This facility will bring much needed
long-term resources to Turkish private sector firms and underscores the
renewed confidence that prime international banks have for well-managed
Turkish banks,” said Khosrow Zamani, IFC director of the Southern Europe
and Central Asia Department.
Zafer Kurtul, the chief executive officer of Akbank called the new agreement
“a key step in promoting Turkish risk with participant banks for tenors
exceeding those that could be raised by Turkish financial institutions
in international markets.” He added, “It also underlines the close cooperation
that has developed between IFC and Akbank. In this economically challenging
environment, Akbank was able to navigate the contractions in the Turkish
banking sector to emerge as the number one bank in Turkey.”
The banks that are participating in the B-loan are:
Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V. (FMO)
Gulf International Bank B.S.C.
National Bank of Kuwait SAK
Standard Chartered Bank
Anglo Irish Bank
Banco Atlántico, S.A.
Natexis Banques Populaires
Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A. (Rabobank)
State Bank of India
Banco Espirito Santo, S.A.
BRE Bank SA
Akbank was established in 1948 by Haci Omer Sabanci, the founder of the
Sabanci Group. Currently, Akbank is the largest private sector bank
in Turkey in terms of shareholders’ equity, loan portfolio, and total
deposits. As of the first half of the year, the bank had total assets
of $16.8 billion equivalent, total deposits of $11.5 billion equivalent
and shareholders’ equity of $2.7 billion equivalent. With a capital
adequacy ratio of 43.5 percent, Akbank is the best capitalized bank in
Turkey, IFC’s third largest country exposure, accounts for about 5 percent
of IFC’s global portfolio. IFC’s portfolio in the country, including
amounts mobilized from commercial banks, is $844 million.
The mission of IFC is to promote sustainable private sector investment
in developing countries, helping to reduce poverty and improve people's
lives. IFC finances private sector investments in the developing world,
mobilizes capital in the international financial markets, helps clients
improve social and environmental sustainability, and provides technical
assistance and advice to governments and businesses. From its founding
in 1956 through FY03, IFC has committed more than $37 billion of its own
funds and arranged $22 billion in syndications for 2,990 companies in 140
developing countries. IFC's worldwide committed portfolio as of FY03 was
$16.7 billion for its own account and $6.6 billion held for participants
in loan syndications.