DCM Seker CB 2 (IFC-38428)

Countries
  • Turkey
Geographic location 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
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
U
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
Nov 17, 2016
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
SEKERBANK TAS
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Amount (USD)
$ 60.00 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 @ IFC website

Updated in EWS May 3, 2017

Disclosed by Bank Aug 17, 2016


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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.
The project consists of an IFC investment up to US$60 million equivalent to be invested in Turkish Liras in the new issuances of Sekerbank’s Covered Bond Programme with a 5 year tenor. Proceeds of IFC’s proposed investment would provide medium and long-term financing to micro, small, and medium enterprises in Turkey.
People Affected By This Project
People Affected By This Project refers to the communities of people likely to be affected positively or negatively by a project.
<font face="Verdana">1. Improved access to MSME finance including the underserved agricultural sector, which will help improve financial inclusion for the MSMEs. Despite high growth, only 38% of loans to businesses in Turkey are channeled to MSMEs;</font><br><font face="Verdana">2. Creation and preservation of jobs, as experience has shown that MSMEs in Turkey grew faster than the Turkish economy, contributing significantly to employment creation;</font><br><font face="Verdana">3. Supporting investments in frontier regions of Turkey as 75 percent of the funded MSME portfolio is located outside the three major Turkish cities.</font>
Investment Description
Here you can find a list of individual development financial institutions that finance the project.
Sekerbank was established in 1953 in Turkey by several sugar beet cooperatives to respond to their financial needs. Sekerbank held an initial public offering in 1997 and subsequently implemented a transformation program in 2002 to restructure and improve its operations. Sekerbank services 71 of the 81 provinces in Turkey through a network of 301 branch and employs 3,818 staff. Sekerbank is a private commercial bank providing universal banking services in Turkey. The shareholders of the bank are the Sekerbank Employee Pension Fund of Employees (35.44%), the Kazakhstan National Welfare Fund, Samruk Kazyna (19.37%), BTA Securities JSC (10.91%) (see note below), public shares listed on the Istanbul stock exchange (34.19%), which include IFC’s shareholding of 6.07%, and Sugar Beet Cooperatives (0.09%). Note: Vakifbank had started execution proceedings in Turkey in order to enforce a judgment against BTA Securities JSC. As part of these proceedings, the relevant Turkish execution office ordered an auction to sell 9.43% of Sekerbank shares held by BTA Securities JSC. Sekerbank participated and won the auction, acquiring its own shares. The reduction of BTA Securities JSC’ shareholding by 9.43% is pending final approval.

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.
Sekerbank T.A.S. Emniyet Evleri Mh. Eski Buyukdere Cad. No: 1/1A Kagithane ISTANBUL – TURKEY Attention: Ms. Oya Sari Structured Finance and Investor Relations International Banking Group Tel: +90 (212) 319 71 58 Fax: +90 (212) 319 71 62 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/

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