ISTANBUL/WASHINGTON D.C., April 27, 2004—
The International Finance Corporation, the private sector arm of the World Bank Group, has announced the signing of a $30 million loan facility to Koç Finansal Kiralama A.S. (“Koçlease”) one of the largest and best performing leasing companies in Turkey. The loan will increase the availability of long term funding, which Turkish private sector companies need to support their growth strategies.
The investment extends IFC’s long-standing, successful collaboration with the Turkish leasing industry and in particular with the Koç group. Koçlease is a subsidiary of Koç Financial Services, which is owned by Koç Holding of Turkey and Unicredito Italiano of Italy.
Jyrki Koskelo, IFC’s director for Global Financial Markets, said, “The loan is in line with IFC’s strategy of assisting premier leasing companies, such as Koçlease, in extending long-term funding to the Turkish private sector.”
Khosrow Zamani, IFC’s director for Southern Europe and Central Asia, noted, “We are pleased with this transaction, which expands our collaboration with the Koç group and Unicredito Italiano. This loan will enable Koçlease to extend long-term funding, particularly to Turkish small businesses that are a key segment of IFC’s strategy in Turkey.”
Cagatay Baydar, general manager of Koçlease, added, “We have always pursued a strictly customer-focused approach, in line with the Koç Financial Services Group’s business philosophy. For us it is crucial to identify customer needs correctly and achieve sound growth through high-quality financial leasing products and services. IFC’s long-term facility will support our strategy of funding small and medium sized enterprises and will add to our overall business success.”
Since its establishment in 1995, Koçlease has provided long-term financing primarily to export-oriented small and medium-sized industrial companies. Koçlease sells its leasing products through the branch network of Koçbank which also belongs to Koç Financial Services Group.
IFC's portfolio in Turkey, including amounts mobilized from commercial banks, stood at $968.5 million as of December 2003. Turkey accounts for about 5 percent of IFC's global investment commitments and is IFC's third-largest country exposure.
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 FY03, IFC has committed more than $37 billion of its own funds and arranged $22 billion in syndications for 2,990 companies in 140 developing countries. IFC’s worldwide committed portfolio as of FY03 was $16.8 billion for its own account and $6.6 billion held for participants in loan syndications.
