Odeabank Equity (IFC-37925)

Regions
  • Europe and Central Asia
Where the impacts of the investment may be experienced.
Countries
  • Turkey
Where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Bank Risk Rating
FI
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Jun 27, 2016
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
ODEA BANK ANONIM SIRKETI
The holder of the loan, grant, or other investment.
Sectors
  • Agriculture and Forestry
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Amount (USD)
$ 75.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 350.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Jul 29, 2018

Disclosed by Bank Jun 27, 2016


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Project Description

The proposed IFC investment consists of participation in a capital increase for Odeabank A.S. in the Republic of Turkey. According to bank documents, the Project will help the Bank to build on its small and medium enterprises loan portfolio and support its existing digital banking activities to reach out to micro and other underbanked segments of the population.

Investment Description
  • International Finance Corporation (IFC)

The sponsor of the Project is Bank Audi s.a.l. Founded in 1830 and incorporated in 1962 as a private joint stock company with limited liability, Bank Audi s.a.l is one of Lebanon’s largest commercial banks, with a nationwide 82-branch network and a network of 217 foreign branches across the Middle East, North Africa, Turkey and Europe. Employing nearly 7,000 people via its Lebanese and international operations, the group is profitable and well capitalized, with consistently strong financial indicators. Total assets and total equity reported to be US$42 billion and US$3.3 billion, respectively, with a market capitalization of around US$2.5 billion as of end-of 2015.

Odeabank’s shareholding structure as of December 31, 2015 is:

Shareholder
Percentage of ownership (%)
Bank Audi s.a.l.
93.83%
Audi Private Bank s.a.l
6.06%
Others
0.11%

The total capital increase is going to be for TRY1 billion (around US$350 million equivalent) where IFC is considering, for its own account, investing up to US$75 million equivalent in local currency in the form of common shares. The FIG Fund, managed by IFC Asset Management Company, a wholly owned subsidiary of IFC, is co-investing with IFC in the transaction.

You can learn more about IFC Asset Management Company at: https://www.ifcamc.org/funds

Private Actors

Founded in November 2012, Odeabank has been a growing player in the Turkish banking sector ranking twelfth in terms of asset size which reached around US$11 billion and a capital base of around US$0.9 billion as of year-end 2015. The Bank has 55 branches and around 1,560 employees offering a wide spectrum of universal banking products among key segments including corporate, commercial, small and medium enterprises and retail banking. The Bank has adopted a direct banking model with effective utilization of alternative distribution channels and has been identified as a potential partner for IFC to work with in supporting digital banking in Turkey.

Contact Information

Ms. Estel Gurdogan
Director
Odeabank A.S.
Levent 199, Buyukdere Caddesi No: 199
Kat: 33-39
34394 Sisli/Istanbul
Tel: +90 212 304 85 20
Fax: +90 212 304 84 45
http://www.odeabank.com.tr

ACCOUNTABILITY MECHANISM OF IFC

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/