Istanbul, Turkey, April 27, 2015 - IFC,
a member of the World Bank Group, is providing a $97 million financing
package to ABank, to increase lending to energy efficiency and renewable
energy projects in order to boost sustainable energy investment in Turkey
and support micro, small, and medium enterprises, which are essential for
economic development and job creation.
IFC will directly lend $50 million of this loan from its own resources.
The remaining $25 million is raised through the IFC-Managed Co-Lending
Portfolio Program, a new syndications platform that offers institutional
investors the ability to passively participate in IFC’s future senior
loan portfolio. European Fund for Southeast Europe (EFSE) is the parallel
lender in the project providing EUR20 million ($22 million) to support
the bank’s financing of micro and small enterprises.
Meric Ulusahin, Board Member and General Manager of ABank, said, “Working
with our strategic partner IFC, we will create innovative products and
additional opportunities to develop sustainable energy investment across
all industries in Turkey. The support extended to ABank by IFC and EFSE
demonstrates the bank’s solid standing, and also confirms its increasing
penetration in climate business and SME banking.”
Monika Beck, Chairperson of the Board of the EFSE, said: “ABank is a valuable
partner of the EFSE and we are pleased to support ABank in its efforts
to foster economic growth and job creation in Turkey”. ABank has been
a partner institution already since 2011.
Energy efficiency and renewable energy has been a focus for IFC in Turkey.
SMEs nearly make up 90% of Turkey’s economy and supporting SMEs to become
more energy efficient generates significant social and economic benefits,
such as decreasing carbon emissions and installation of environmentally
friendly production processes. As of 2013, IFC has provided $564 million
financing for such investments.
Ed Strawderman, IFC Associate Director for Financial Institutions Group
for Europe, Middle East, and North Africa added that: “ABank is a key
and long term partner for IFC in addressing the financing needs for climate
related investments and SMEs in Turkey, which are crucial for economic
development. The project also once again demonstrates the significant role
IFC can play in helping mobilize other resources for long-term financing.”
IFC has been supporting private sector development in Turkey for the past
50 years. With a $4.3 billion outstanding portfolio, Turkey is the second
largest country in IFC’s global portfolio. In line with the Turkey
Country Partnership Strategy for fiscal years 2012-2015, IFC invested a
record $2.8 billion in private sector projects in Turkey.
IFC, a member of the World Bank Group, is the largest global development
institution focused exclusively on the private sector. Working with private
enterprises in about 100 countries, we use our capital, expertise, and
influence to help eliminate extreme poverty and boost shared prosperity.
In FY14, we provided more than $22 billion in financing to improve lives
in developing countries and tackle the most urgent challenges of development.
For more information, visit www.ifc.org
Established in 1991, ABank ranks among the most active players in the Turkish
banking sector, by sustaining steady growth on a solid corporate and financial
foundation. Going public in 1995, ABank later in 1996 started to operate
under the majority ownership of the Anadolu Group. In July 2013, Qatar’s
largest private bank Commercial Bank of Qatar has acquired 74.25% of ABank.
This milestone acquisition represents one of Commercial Bank of Qatar’s
largest investments; its first investment in Turkey and its first acquisition
of a majority stake in another bank.
Initiated by KfW Development Bank (KfW) on
15 December 2005 from four multi-donor programs under its management, the
EFSE is the first public-private partnership of its kind and the first
privately managed fund in development finance to leverage private funding
for MSE finance in the target region. Capital is provided by donor agencies,
international financial institutions and private institutional investors.
For more information, visit: http://www.efse.lu/