Trade Finance Guarantee Facility (MIGA-15700)

Regions
  • Europe and Central Asia
Geographic location where the impacts of the investment may be experienced.
Countries
  • Turkiye
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • Multilateral Investment Guarantee Agency (MIGA)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
C
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Mar 20, 2026
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Banco Santander S.A., VakifBank
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Energy
  • Finance
  • Industry and Trade
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Guarantee
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 257.30 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ MIGA website

Updated in EWS Feb 19, 2026

Disclosed by Bank Feb 17, 2026

Contribute Information
Can you contribute information about this project?
Contact the EWS Team

Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

As stated by the MIGA, this summary covers an application by Banco Santander for coverage of a proposed short-term loan facility, focused on supporting trade, to VakifBank (VB). The Multilateral Investment Guarantee Agency (MIGA) would provide the lender with up to US$257.3 million in trade finance guarantees against the risk of non-payment by VB.

The MIGA-covered facility would be used to provide short-term loans for trade-related payments, aimed mainly at supporting imports of (i) steel scrap to be recycled in Turkiye; and (ii) wind turbines and related parts. The tenor of each loan to be made under the facility is up to one year.

The Guaranteed Transaction is expected to contribute to Turkiye's national economic strategy to support its export sector and transition to an environmentally sustainable economy. The steel recycling sector plays a key role in supporting the export-oriented steel sector in an environmentally sustainable way by reducing reliance on primary iron raw materials and contributing to the efficient use of resources. Additionally, the country continues to increase its installed wind onshore power capacity. The import of wind turbine parts would support local energy producers in developing additional wind power capacity, thereby supporting the government's transition to renewable energy and helping to reduce dependence on imported energy sources.

The Guaranteed Transaction is aligned with the priorities set under MIGA's FY24-26 Strategy and Business Outlook, as it will support the expansion of trade finance. In addition, the Guaranteed Transaction is consistent with MIGA's strategic focus of supporting the transition to an environmentally sustainable economy.

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

As stated on the project disclosure page, the MIGA-covered facility will be used by VB to on-lend to their clients for trade-related activities. These transactions pose minimal environmental and social ("E&S") risks and impacts and as such, the project has been categorized as 'FI-3' under MIGA's Policy on Environmental and Social Sustainability (2013).

The applicable E&S requirements for this Guaranteed Transaction are the MIGA Exclusion List and applicable E&S laws in Turkiye. VB will be responsible for screening the transactions against the MIGA E&S requirements, VB will also be required to comply with the labor standards set forth in MIGA Performance Standard 2: Labor and Working Conditions.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.
Financial Intermediary
A financial intermediary is a bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

As stated by Bloomberg, Banco Santander S.A. attracts deposits and offers retail, commercial and private banking, and asset management services. The Bank offers consumer credit, mortgage loans, lease financing, factoring, mutual funds, pension funds, insurance, commercial credit, investment banking services, structured finance, and advice on mergers and acquisitions.

Turkiye Vakiflar Bankasi T.A.O. attracts deposits and offers corporate, retail, and investment banking services. The Bank offers consumer and agricultural loans, sponsors credit cards, offers asset management services, manages mutual funds, and offers securities brokerage services. Vakiflar Bankasi also takes equity stakes in Turkish companies.

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

No project contacts provided at the time of disclosure.

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://www.miga.org/contact/access_to_information

You can also request general information about MIGA and for information on guarantees by emailing: migainquiry@worldbank.org

ACCOUNTABILITY MECHANISM OF IFC/MIGA

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org

How it works

How it works