ISTANBUL/WASHINGTON D.C., September
21, 2004— The International Finance Corporation, the private sector
arm of the World Bank Group, today announced the signing of a landmark
$50 million tier II capital investment in Turkiye Sinai Kalkinma Bankasi.
The investment provides long-term subordinated debt to TSKB and marks one
of IFC’s largest commitments in support of Turkey’s private sector.
Established in 1950 through the joint collaboration of Turkey’s central
bank, the World Bank, and the Turkish private sector, TSKB has been a critical
source of long-term financing for Turkish corporates. The relative
scarcity of local long term funding has made the bank a key catalyst of
the country’s private sector development.
Khosrow Zamani, IFC’s director for Southern Europe and Central Asia, said,
“We are pleased with this investment, which strengthens our relationship
with TSKB, one of Turkey’s most prestigious financial institutions. This
project is a key element in IFC’s strategy of strengthening Turkey’s
financial institutions and enabling them to better meet the long term funding
needs of private sector enterprises. It complements the World Bank’s
lending program to TSKB and will contribute to sustainable private sector
Jyrki Koskelo, IFC’s director for Global Financial Markets, added, “As
Turkey’s premier term lending institution, TSKB has played a pioneering
role in making long-term financing available to Turkish companies. This
innovative investment will strengthen TSKB’s financial and institutional
capability and will better enable it to achieve its mission.”
Halil Eroglu, CEO and president of TSKB, said, “IFC’s long-term tier
II capital investment in TSKB is a landmark in our cooperation over the
past four decades. It is a sign of IFC’s confidence in TSKB and the Turkish
financial system. The facility will enhance the well-established relationship
between TSKB and IFC. As Turkey’s first privately owned development and
investment bank, TSKB is fully committed to support private sector growth
Turkey accounts for about 5 percent of IFC's global investment commitments
– IFC’s third -largest country exposure. IFC's committed portfolio
to the country, including amounts mobilized from commercial banks, amounted
to $968.5 million as of end-December 2003.
The mission of IFC (www.ifc.org)
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 FY04, IFC has committed more than $44
billion of its own funds and arranged $23 billion in syndications for 3,143
companies in 140 developing countries. IFC’s worldwide committed portfolio
as of FY04 was $17.9 billion for its own account and $5.5 billion held
for participants in loan syndications.