DCM Green MCB (IFC-38649)

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
Active
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.
Borrower
Turkiye Garanti Bankasi AS
The holder of the loan, grant, or other investment.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Amount (USD)
Not Disclosed
When disclosed, the bank did not provide this value. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Aug 3, 2018

Disclosed by Bank Jun 7, 2017


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Project Description

According to IFC website, the proposed project is an investment of up to US$150 million equivalent in Turkish lira in the Mortgage Covered Bond to be issued by Türkiye Garanti Bankasi AS (bank). The bond to be issued by the Bank will be backed by receivables arising under the Bank’s mortgage portfolio, including green mortgages. The proceeds of the sale of the bond will be used to support the Bank’s lending operations in green mortgages to individuals in Turkey.

This Project is expected to have high development impact with significant social and economic benefits:
1. supporting one of the leading private banks in the market by investing in the bank's first mortgage covered bond issued in local currency
2. improving access to housing finance to Turkey's young and fast growing population, where market penetration remains quite low with a residential mortgage loan-to-GDP ratio of 7.3 percent as of year-end 2015;
3. increasing the share of green mortgages in the market
4. continuing to help develop Turkey's capital markets through the issuance of a new instrument for the country's first mortgage covered bond issuance in local currency.

Investment Description
  • International Finance Corporation (IFC)

Garanti Bank is the second largest private banking group in Turkey with total assets of over US$100 billion. As of September 30, 2016, Banco Bilbao Vizcaya Argentaria SA (“BBVA”), the main shareholder, owned 39.9% shares of the Bank. The second largest shareholder of the Bank is Dogus Group with an equity stake of 10%.The remaining shares of the Bank are free floated on Borsa Istanbul. BBVA, a global financial services group founded in 1857, is the largest financial institution in Spain and Mexico and it has leading franchises in South America, the Sunbelt Region of the United States and Turkey.

Private Actors

Garanti Bank is the second largest private banking group in Turkey with total assets of over US$100 billion. As of September 30, 2016, Banco Bilbao Vizcaya Argentaria SA, the main shareholder, owned 39.9% shares of the Bank. The second largest shareholder of the Bank is Dogus Group with an equity stake of 10%.The remaining shares of the Bank are free floated on Borsa Istanbul. BBVA, a global financial services group founded in 1857, is the largest financial institution in Spain and Mexico and it has leading franchises in South America, the Sunbelt Region of the United States and Turkey.

Contact Information

Project Contact: Ms. Gencay Gedik Çoban
Supervisor, Financial Institutions, Garanti Bank
Office Address: Nispetiye Mah. Aytar Cad. No. 2 Levent Besiktas Istanbul
Tel: +90 (212) 318 1818 | Tel (direct): +90 (212) 318 1733 | Fax:+90 (212) 216 6217

General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384

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/