Istanbul, Turkey, August 19 , 2016—
IFC, a member of the World Bank Group, has extended $250 million in financing
to Akbank, one of Turkey’s leading banks, to further enhance the Bank’s
lending to small and medium enterprises (SMEs).
IFC’s eight-year funding package will support
Akbank’s Diversified Payment Rights (DPR) programme, an established financing
instrument in Turkey’s capital markets to raise long-term financing. The
funding will enable Akbank to scale up its lending to SMEs, which make
up almost 90 % of businesses in Turkey and create most of the jobs.
Kerim Rota, Akbank Executive Vice President
in charge of Treasury said: “Akbank finalized the transaction in a challenging
period for global financial markets. We leveraged our high brand value,
robust balance sheet and longstanding relationships with financial institutions
to register another landmark financing agreement. Extending new loans to
SMEs is one of our strategic priorities. We are committed to providing
long-term financing to the real sector and Turkish economy at longer tenors
and the most favorable rates.”
DPR financing uses foreign currency in-flows
from export and other sources as collateral, enabling funding at longer
periods and cheaper rates than those provided through unsecured loans.
In 2010, IFC and Akbank cooperated to revive the DPR funding structure
in Turkey, helping to diversify and deepen Turkey’s capital markets.
“With this financing, we are addressing
two of IFC’s key development priorities in Turkey - financial inclusion
and capital markets development,” said Manuel Reyes-Retana, IFC Regional
Head of Financial Institutions Group in Europe, Middle East, and North
Africa. “Access to long-term financing is a challenge in emerging markets,
especially for SMEs, the backbone of Turkey’s economic activity. Innovative
funding structures such as this allow for bigger cooperation and more impact.”
Turkey is IFC’s second-largest country of
operations globally and host to its largest office outside Washington D.C.
In fiscal year 2015, IFC had
a third consecutive record year in Turkey, investing $1.8 billion including
mobilization. In 2015, IFC continued its partnership with Turkey’s banks
and financial institutions,
providing $220 million in loans and committing $530 million to Turkish
banks under its Global Trade Finance Program, broadening access to finance
for companies and reduces risks for local banks.
IFC, a member of the World Bank Group, is
the largest global development institution focused on the private sector
in emerging markets. Working with more than 2,000 businesses worldwide,
we use our capital, expertise, and influence, to create opportunity where
it’s needed most. In FY15, our long-term investments in developing countries
rose to nearly $18 billion, helping the private sector play an essential
role in the global effort to end extreme poverty and boost shared prosperity.
For more information, visit www.ifc.org
Established in 1948, Akbank is the most valuable
banking brand in Turkey according to UK based Brand Finance with an approx.
US$93 billion of consolidated assets as of 1H2016. A The bank is 48.9%
owned by H.Ö. Sabanci Holding, affiliated institutions and individuals,
and has a 51.1% free float as of July 2016 end. Akbank continues to provide
unrivalled financial solutions to its customers leveraging its robust capital,
diversified funding base, strong liquidity, and superior asset quality,
together with its non-banking subsidiaries Ak Asset Management, Ak Investment
and Ak Lease. The bank serves its consumer and corporate clients with a
strong and extensive distribution network that utilizes both traditional
and digital channels through:
and Corporate Internet Branches
Telephone Banking Center
For more information, visit www.akbank.com.tr