ISTANBUL, April 22 -- The International Finance Corporation (IFC) and Kocbank today signed a Memorandum of Understanding for the provision by IFC of a US$85 million funding package to Kocbank.
Present at the signing were Mr. Jannik Lindbaek, Executive Vice President of IFC; Mr. Tevfik Altinok, Chairman of Kocbank; Mr. Kutsan Celebican, Vice Chairman of Kocbank; Mr. Omer M. Koc, Director of Kocbank; Mr. Engin Akcakoca, General Manager of Kocbank; Mr. Edward Nassim, Director of IFC's Europe Department; and Mr. Khalid Mirza, IFC Resident Representative in Turkey.
The investment, which was recently approved by IFC's Board of Directors, would comprise loans of US$25 million for IFC's own account and a US$60 million facility that would provide Kocbank with access to the U.S. financial markets. The facility is being jointly structured by IFC and Credit Suisse and would include participations by other international commercial banks.
The purpose of IFC's investment would be to help Kocbank to expand its trade financing activities, particularly pre-export finance; it would also be used by Kocbank, and its leasing subsidiary, Koclease, to expand the provision of leasing and investment finance for Turkish private sector enterprises.
"This transaction reflects IFC's continuing commitment to broadening the sources of financing for its clients in developing countries," said Mr. Jannik Lindbaek, IFC's Executive Vice President. "It will help Kocbank diversify its funding sources and provide medium- and long-term financing for on-lending to the bank's private sector clients."
Kocbank is a private sector commercial bank owned by the Koc Group.
IFC, a member of the World Bank Group, is the largest multilateral source of equity and loan financing for private sector projects in developing countries.
