DCM Akbank CBond (IFC-39781)

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
Aug 4, 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
Akbank Turk 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.
Loan 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 3, 2018

Disclosed by Bank Jul 6, 2017


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Project Description

According to IFC website, the proposed project involves supporting a leading Turkish commercial bank and an existing IFC partner, Akbank T.A.S., through the purchase of an IFC-only issuance of mortgage covered bonds of up to US$150 million or its equivalent in Turkish Lira. Proceeds from IFC’s investment would be used to support the extension of housing loans to Turkish borrowers, helping further strengthening residential housing finance, including green mortgages. The expected development impacts are:

1. The Project would support further growth in the mortgage sector: IFC long term funding would enhance access to housing finance in Turkey, which has an attractive demographic profile and is underpenetrated.
2. Mitigate climate change by financing energy efficient green residential buildings.
3. Supporting a covered bond program in Turkey that meets international standards.

Investment Description

Akbank's majority shareholder is Sabanci Holding A.S., affiliated institutions and individuals with a 48.9% stake, while the remaining 51.1% is publicly traded on Borsa Istanbul.

Sabanci Holding A.S. is one of the two largest multi-business enterprises in Turkey composed of 69 affiliates with a total assets of USD 96,8 billion mainly operated in financial services, energy, retail, cement and industrial businesses. Its shares are listed on Borsa Istanbul.

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

Akbank's majority shareholder is Sabanci Holding A.S., affiliated institutions and individuals with a 48.9% stake, while the remaining 51.1% is publicly traded on Borsa Istanbul.

Sabanci Holding A.S. is one of the two largest multi-business enterprises in Turkey composed of 69 affiliates with a total assets of USD 96,8 billion mainly operated in financial services, energy, retail, cement and industrial businesses. Its shares are listed on Borsa Istanbul.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
Akbank Investor Finance invests in Akfen Altyapi Danismanlik AS Parent Company Energy
Akbank Investor Finance invests in Alasehir Geothermal Power Parent Company Energy
Akbank Investor Finance invests in Antalya Airport Refinancing 2017 Client Transport
Akbank Investor Finance invests in Arkas Holding AS Parent Company Transport
Akbank Investor Finance invests in BOTAS Parent Company Mining
Akbank Investor Finance invests in Botas' and Kolin-Kalyon's FSRU Ships Acquisition Client Mining
Akbank Investor Finance invests in Canakkale Otoyol Client Transport
Akbank Investor Finance invests in Dogus Cay ve Gida Maddeleri Parent Company Construction
Akbank Investor Finance invests in E ON SE Parent Company Energy
Akbank Investor Finance invests in Enerjisa Enerji Uretim As Client Energy
Akbank Investor Finance invests in Enerjisa Uretim Parent Company Energy
Akbank Investor Finance invests in Enerjisa Uretim Refinancing 2020 Client Energy
Akbank Investor Finance invests in Forum Marmara Shopping Mall Client Construction
Akbank Investor Finance invests in Fraport Parent Company Transport
Akbank Investor Finance invests in IC ICTAS Parent Company Transport
Akbank Investor Finance invests in Kalyon Group Parent Company Mining
Akbank Investor Finance invests in Kizildere III Geothermal Client Energy
Akbank Investor Finance invests in Lapseki and Ivrindi Gold Mines Client Mining
Akbank Investor Finance invests in Menzelet Kilavuzlu Elektrik Client Energy
Akbank Investor Finance invests in Tumad Parent Company Mining
Akbank Investor Finance invests in VIP Turkey Enerji AS Client Mining
Akbank Investor Finance invests in Vitol Holding BV Parent Company Mining
Akbank Investor Finance invests in Vitol Invest Partnership Ltd Client Mining
Akbank Investor Finance invests in Yapi Merkezi Parent Company Transport
Akbank Investor Finance invests in Zorlu Holding AS Parent Company Energy
Akfen Altyapi Danismanlik AS Parent Company Energy owns Menzelet Kilavuzlu Elektrik Client Energy
BOTAS Parent Company Mining owns Botas' and Kolin-Kalyon's FSRU Ships Acquisition Client Mining
Dogus Cay ve Gida Maddeleri Parent Company Construction owns Forum Marmara Shopping Mall Client Construction
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
Fraport Parent Company Transport owns Antalya Airport Refinancing 2017 Client Transport
Tumad Parent Company Mining owns Lapseki and Ivrindi Gold Mines Client Mining
Vitol Holding BV Parent Company Mining owns VIP Turkey Enerji AS Client Mining
Vitol Holding BV Parent Company Mining owns Vitol Invest Partnership Ltd Client Mining
Yapi Merkezi Parent Company Transport owns Canakkale Otoyol Client Transport
Zorlu Holding AS Parent Company Energy owns Kizildere III Geothermal Client Energy

Contact Information

Project Contact: Levent Cem Egritag
International Banking Senior Vice President, Akbank T.A.S
Telephone No.: +90 (212) 385 62 46
Email Address: Cem.Egritag@akbank.com
Office Address: Sabanci Center 4.Levent, 34330 Istanbul, Turkey
Website: www.akbank.com

General IFC Inquiries
IFC Communications
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/