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.
About IFC
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
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About Akbank
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:
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14,000 employees
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900 branches
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Consumer and Corporate Internet Branches
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The Telephone Banking Center
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4,200 ATMs
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420,000 POS terminals
