ISTANBUL, June 27, 2005— The International
Finance Corporation, the private sector arm of the World Bank Group, today
announced the signing of a $50 million subordinated debt investment in
Turk Ekonomi Bankasi. The investment will strengthen the bank’s tier-2
capital and boost its lending to small and medium enterprises and retail
customers across Turkey.
IFC’s financing complements an investment by BNP Paribas, which became
a joint venture partner of Turk Ekonomi Bankasi earlier this year. BNP
Paribas’ global expertise will enable Turk Ekonomi Bankasi to leverage
IFC’s investment effectively and become one of the leading players in
Turkey’s banking sector.
Khosrow Zamani, IFC’s director for Southern Europe and Central Asia, said,
“We are very pleased with this investment, which further strengthens our
relationship with Turk Ekonomi Bankasi. This project is a key element in
IFC’s strategy of advancing the Turkish banking sector by supporting well-managed
financial institutions and enabling their operational expansion with a
focus on the corporate sector and SMEs.”
Jyrki Koskelo, IFC’s director for Global Financial Markets, added, “The
transaction builds on IFC’s previous investments in Turk Ekonomi Bankasi
as we continue to assist the bank in enhancing its institutional capacity.
The investment highlights our use of innovative structures to meet
the needs of our clients in an effective way.”
Varol Civil, general manager of Turk Ekonomi Bankasi, said, “We have had
a long and fruitful relationship with IFC over the years. This investment
underscores IFC’s strong confidence in our bank and will enable us to
expand lending operations significantly, particularly to SMEs and retail
customers.”
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.
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