DCM Is Green Mortgage DPR (IFC-39403)

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
Proposed
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
Nov 10, 2017
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
TURKIYE IS BANKASI ANONIM SIRKETI
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.
Ring Fence
  • Housing
A financial intermediary is a commercial bank or financial institution that receives funds from a development bank, sometimes for a specific lending purpose. A "ring fence" is another name for this specific purpose. These funds are then used for lending by the financial intermediary to client companies or individuals.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 150.00 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)
$ 150.00 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 Aug 4, 2018

Disclosed by Bank Sep 27, 2017


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Project Description

This project finances the purchase of notes issued by Isbank to support residential mortgage lending, including green mortgages.

Investment Description
Financial Intermediary
Financial Intermediary: A commercial 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 Actor Relationship

There is often limited information publicly available about what development banks are funding through financial intermediaries. In 2021, the Early Warning System partnered with Oxfam International to incorporate information on high-risk projects being funded by financial intermediaries receiving funding from the International Finance Corporation (IFC) and the Dutch Development Bank (FMO).

The information listed below describes the relationship between the different private actors linked to high-risk sectors and subprojects of IFC and FMO's financial intermediary investments and/or the financial intermediary's parent companies made from 2017 through 2020, including any associated ring fences.

The database, however, does not explicitly or implicitly imply that IFC or FMO have material exposure to or are contractually or legally accountable to the sub-projects financed by their financial intermediaries or the financial intermediary's parent companies. It only shows a seemingly financial relationship among the different private actors, the financial intermediaries, and IFC or FMO.

Private Actors Description

Founded in 1924, Isbank is the largest private bank in Turkey with total assets worth US$97 billion as of June 30, 2017 and the highest market shares in most segments. Headquartered in Istanbul, Isbank serves around 15 million customers with its 24,776 employees and wide physical and digital service networks, including 1,349 domestic branches country-wide (largest among private banks), 23 foreign branches, 6,542 ATMs (largest network among private banks), mobile and internet banking.

As of June 30, 2017, Isbank's largest shareholder is Isbank's Employees' Pension Fund (39.95%). 28.09% of the shares are Ataturk shares which are held by the Republican People's Party (CHP) and 31.96% are quoted at Borsa Istanbul and they are also traded at London Stock Exchange in the form of GDRs.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
Baskent Gas Distribution Parent Company Energy owns Baskent Gas Distribution Additional Facility Client Energy
Borusan Parent Company Energy owns Saros Wind Farm (138MW) Client Energy
Cengiz Holding AS Parent Company Energy owns AEDC Privatization Client Energy
Cengiz Holding AS Parent Company Energy owns Bogazici-Akdeniz-Camlibel Electricity Distribution 2 Client Energy
E ON SE Parent Company Energy owns Enerjisa Enerji Uretim As Client Energy
Enerjisa Uretim Parent Company Energy owns Enerjisa Uretim Refinancing 2020 Client Energy
ERG Insaat Parent Company Transport owns Ankara-Nigde Highway (330km) PPP Client Transport
Isbank Investor Finance invests in AEDC Privatization Client Energy
Isbank Investor Finance invests in Ankara-Nigde Highway (330km) PPP Client Transport
Isbank Investor Finance invests in Baskent Gas Distribution Parent Company Energy
Isbank Investor Finance invests in Baskent Gas Distribution Additional Facility Client Energy
Isbank Investor Finance invests in Bogazici-Akdeniz-Camlibel Electricity Distribution 1 Client Energy
Isbank Investor Finance invests in Bogazici-Akdeniz-Camlibel Electricity Distribution 2 Client Energy
Isbank Investor Finance invests in Borusan Parent Company Energy
Isbank Investor Finance invests in Cengiz Holding AS Parent Company Energy
Isbank Investor Finance invests in Coban Yildizi Parent Company Energy
Isbank Investor Finance invests in Dogrudan Elektrik Parent Company Energy
Isbank Investor Finance invests in E ON SE Parent Company Energy
Isbank Investor Finance invests in Enerjisa Enerji Uretim As Client Energy
Isbank Investor Finance invests in Enerjisa Uretim Parent Company Energy
Isbank Investor Finance invests in Enerjisa Uretim Refinancing 2020 Client Energy
Isbank Investor Finance invests in ERG Insaat Parent Company Transport
Isbank Investor Finance invests in Finansbank AS Client Finance
Isbank Investor Finance invests in Kangal Thermal Power Plant (450MW) Additional Facility Client Energy
Isbank Investor Finance invests in Kazanci Holding Parent Company Energy
Isbank Investor Finance invests in Kazanci Holding Coruh and Firat Electricity Distribution Client Energy
Isbank Investor Finance invests in Kolin Insaat Turizm Sanayii Ve Ticaret Parent Company Energy
Isbank Investor Finance invests in Konya Seker Parent Company Energy
Isbank Investor Finance invests in Limak Parent Company Energy
Isbank Investor Finance invests in Qatar National Bank Qpsc Parent Company Finance
Isbank Investor Finance invests in Saros Wind Farm (138MW) Client Energy
Isbank Investor Finance invests in Seza Insaat Parent Company Transport
Isbank Investor Finance invests in Sitebank AS Parent Company Finance
Isbank Investor Finance invests in Turkish Petroleum Distribution Privatisation Client Mining
Isbank Investor Finance invests in Uludag and Camlibel Distribution Regions Additional Facility 2018 Client Energy
Isbank Investor Finance invests in Uludag Distribution Region Refinancing 2020 Client Energy
Isbank Investor Finance invests in VIP Turkey Enerji AS Client Mining
Isbank Investor Finance invests in Vitol Holding BV Parent Company Mining
Isbank Investor Finance invests in Zulfikarlar Parent Company Mining
Kazanci Holding Parent Company Energy owns Kazanci Holding Coruh and Firat Electricity Distribution Client Energy
Kolin Insaat Turizm Sanayii Ve Ticaret Parent Company Energy owns Bogazici-Akdeniz-Camlibel Electricity Distribution 1 Client Energy
Konya Seker Parent Company Energy owns Kangal Thermal Power Plant (450MW) Additional Facility Client Energy
Limak Parent Company Energy owns Uludag and Camlibel Distribution Regions Additional Facility 2018 Client Energy
Limak Parent Company Energy owns Uludag Distribution Region Refinancing 2020 Client Energy
Qatar National Bank Qpsc Parent Company Finance owns Finansbank AS Client Finance
Vitol Holding BV Parent Company Mining owns VIP Turkey Enerji AS Client Mining
Zulfikarlar Parent Company Mining owns Turkish Petroleum Distribution Privatisation Client Mining

Contact Information

Türkiye Is Bankasi A.S.
Nilgün Yosef Osman
Unit Manager, International Financial Institutions Division
+902123162810
nilgun.osman@isbank.com.tr
Genel Mudurluk, Kule 1, Kat 25, 34330 Levent, Istanbul - Turkey
www.isbank.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/