DCM-YKB Covered Bond (IFC-39501)

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 2, 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
YAPI VE KREDI 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
  • Climate
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.
Primary Source

Original disclosure @ IFC website

Updated in EWS Aug 27, 2018

Disclosed by Bank Apr 25, 2017


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

Project Description

The project (the “Project”) involves supporting Yapi Kredi Bank A.S. (“YKB”, or the “Bank”), through the purchase of an IFC-only issuance of covered bond of up to US$150 million. The underlying asset pool will be backed by YKB’s existing mortgage portfolio. The proceeds of IFC’s investment would provide YKB long term financing to support the mortgage segment of its lending operations, with some portion to be allocated to ‘green’ mortgages per IFC's eligibility criteria.

Established in 1944, YKB is the 4th largest private bank in Turkey; operating in retail (individual and SME), private and corporate / commercial banking. As of end-2016, YKB operates all around Turkey through its 936 branches and 19,400+ employees. In addition to universal banking services, Yapi Kredi Group also operates in leasing, factoring and asset management businesses. Yapi Kredi Group also has banking subsidiaries in the Netherlands, Russia, Azerbaijan and Malta.

As of end-2016, YKB posted Total Assets of TRY271 billion, Net Loans of TRY176.5 billion and Net Income of TRY2,932 million on a consolidated basis.

YKB is an existing IFC client.

Investment Description

Yapi Kredi Bankasi A.S. is owned 81.8% by Koc Financial Services ("KFS"). KFS is a Unicredit (an Italian banking group) and Koc Holding JV (a Turkish conglomerate). Both Unicredit and Koc Group have 40.9% stake at YKB each. The remaining 18.2% is listed on the Istanbul Stock Exchange.

Koc Holding A.S. is the largest industrial conglomerate in Turkey, and that country's only entry on the Fortune Global 500 list. Koc Holding is headquartered in Istanbul, Turkey. As of end-2016, Koc Group had Total Assets of EUR23.7 billion and Net Income of EUR1,036 million. Koc Holding is rated Baa3 (Negative outlook) by Moody’s and BBB- (Negative outlook) by S&P.

Unicredit Group, with roots dating back to 1473, is a systemically important financial institution headquartered in Milan, Italy. The Group operates through leading banks in 14 countries and its network in another 18 countries. As of end-2016, Unicredit Group has Total Assets of EUR860 billion and Net Income of EUR18,801 million. Unicredit is rated Baa1 by Moody's, BBB+ by Fitch and BBB- by S&P.

The Project is a proposal to invest up to US$150 million on IFC’s own account in a new tranche under YKB’s existing Covered Bond Programme to support YKB's on-lending activities to residential mortgage projects in Turkey.

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

Yapi Kredi Bankasi A.S. is owned 81.8% by Koc Financial Services (KFS). KFS is a Unicredit (an Italian banking group) and Koc Holding JV (a Turkish conglomerate). Both Unicredit and Koc Group have 40.9% stake at YKB each. The remaining 18.2% is listed on the Istanbul Stock Exchange.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
Akfen Altyapi Danismanlik AS Parent Company Energy owns Menzelet Kilavuzlu Elektrik Client Energy
Akfen Holding AS Parent Company Energy owns Canakkale & Denizli Wind Farms 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
ERG Insaat Parent Company Transport owns Ankara-Nigde Highway (330km) PPP Client Transport
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 Insaat Sanayi ve Ticaret Parent Company Energy owns Cetin and Alkumru HPP Client Energy
TAV Airports Holding Parent Company Transport owns Ankara Esenboga Airport Refinancing Client Transport
Turkiye Elektrik Dagitim AS Parent Company Energy owns Camlibel Elektrik Dagitim AS Client Energy
Unit Group Parent Company Energy owns Gebze Gas Fired IPP Client Energy
Unit Investments SA Parent Company Energy owns Bagistas II HPP Client Energy
Yapi Kredi Bankasi Investor Finance invests in AEDC Privatization Client Energy
Yapi Kredi Bankasi Investor Finance invests in Akfen Altyapi Danismanlik AS Parent Company Energy
Yapi Kredi Bankasi Investor Finance invests in Akfen Holding AS Parent Company Energy
Yapi Kredi Bankasi Investor Finance invests in Ankara Esenboga Airport Refinancing Client Transport
Yapi Kredi Bankasi Investor Finance invests in Ankara-Nigde Highway (330km) PPP Client Transport
Yapi Kredi Bankasi Investor Finance invests in Arkas Holding AS Parent Company Transport
Yapi Kredi Bankasi Investor Finance invests in Bagistas II HPP Client Energy
Yapi Kredi Bankasi Investor Finance invests in Bogazici Elektrik Dagitim AS Parent Company Energy
Yapi Kredi Bankasi Investor Finance invests in Bogazici-Akdeniz-Camlibel Electricity Distribution 1 Client Energy
Yapi Kredi Bankasi Investor Finance invests in Bogazici-Akdeniz-Camlibel Electricity Distribution 2 Client Energy
Yapi Kredi Bankasi Investor Finance invests in Camlibel Elektrik Dagitim AS Client Energy
Yapi Kredi Bankasi Investor Finance invests in Canakkale & Denizli Wind Farms Client Energy
Yapi Kredi Bankasi Investor Finance invests in Canakkale Otoyol Client Transport
Yapi Kredi Bankasi Investor Finance invests in Cengiz Holding AS Parent Company Energy
Yapi Kredi Bankasi Investor Finance invests in Cetin and Alkumru HPP Client Energy
Yapi Kredi Bankasi Investor Finance invests in Coban Yildizi Parent Company Energy
Yapi Kredi Bankasi Investor Finance invests in Dogrudan Elektrik Parent Company Energy
Yapi Kredi Bankasi Investor Finance invests in Ege Kimya Parent Company Industry and Trade
Yapi Kredi Bankasi Investor Finance invests in ERG Insaat Parent Company Transport
Yapi Kredi Bankasi Investor Finance invests in Gebze Gas Fired IPP Client Energy
Yapi Kredi Bankasi Investor Finance invests in Kangal Thermal Power Plant (450MW) Additional Facility Client Energy
Yapi Kredi Bankasi Investor Finance invests in Kazanci Holding Parent Company Energy
Yapi Kredi Bankasi Investor Finance invests in Kazanci Holding Coruh and Firat Electricity Distribution Client Energy
Yapi Kredi Bankasi Investor Finance invests in Kolin Insaat Turizm Sanayii Ve Ticaret Parent Company Energy
Yapi Kredi Bankasi Investor Finance invests in Konya Seker Parent Company Energy
Yapi Kredi Bankasi Investor Finance invests in Limak Insaat Sanayi ve Ticaret Parent Company Energy
Yapi Kredi Bankasi Investor Finance invests in Menzelet Kilavuzlu Elektrik Client Energy
Yapi Kredi Bankasi Investor Finance invests in Seza Insaat Parent Company Transport
Yapi Kredi Bankasi Investor Finance invests in TAV Airports Holding Parent Company Transport
Yapi Kredi Bankasi Investor Finance invests in Turkiye Elektrik Dagitim AS Parent Company Energy
Yapi Kredi Bankasi Investor Finance invests in Unit Group Parent Company Energy
Yapi Kredi Bankasi Investor Finance invests in Unit Investments SA Parent Company Energy
Yapi Kredi Bankasi Investor Finance invests in Yapi Merkezi Parent Company Transport
Yapi Merkezi Parent Company Transport owns Canakkale Otoyol Client Transport

Contact Information

Project Contact: Ms. Sinem Emiroglu
Head of Financial Institutions, Yapi ve Kredi Bankasi A.S. 
Telephone No.: +90 212 339 70 00
Email Address: sinem.emiroglu@yapikredi.com.tr
Office Address: Yapi ve Kredi Bankasi A.S. Yapi Kredi Plaza D Blok Levent 34330 Istanbul Turkey
Website: www.yapikredi.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/