According to the IFC, the proposed financing package to Isbank consists of (i) IFC A Loans of up to US$60 million on own account (including US$10 million credit insurance); (ii) B1 Loans of up to EUR20 million and US$5 million, respectively, and (iii) parallel loans of up to EUR55 million.
The proposed investment is a part of IFC’s wider earthquake response project (FIG TUR-ER, Project #48230) which entails up to US$600 million to 5 Turkish banks. The tenor of the investment is 367 days in a so called “1+1+1 year” structure - if requested by Isbank, from date of 1st disbursement to be renewed annually for up to two additional extensions upon mutual agreement of IFC and the Bank.
The investment will support Isbank to meet the immediate liquidity needs Farmer/Retail/Micro/Small business loans in the Earthquake Region, and further support the Bank to extend new loans to the aforementioned segments in the Region, thus supporting post-earthquake relief and recovery efforts.
The IFC categorized the project E&S risk as FI-3.
As stated by the IFC, established in 1924, Isbank is the largest private sector bank in Türkiye. More than 90 percent of the assets of Isbank and its consolidated subsidiaries in financial services (Isbank Group) are in Türkiye. As of June 30, 2023, Isbank provides services to approximately 16 million active customers through a network of 1,113 branches, of which 1,091 are domestic branches, and 6,243 ATMs. Isbank has a credit rating of B- with a negative outlook from Fitch Ratings (February 2023) and B3 with a stable outlook from Moody’s Investor Services (August 2022).
Shareholding: As of June 30, 2023, IsBank’s supplementary employee pension fund, its largest shareholder, holds 38.20 percent of the shares. Another 33.71 percent of IsBank’s shares are listed on the Istanbul Stock Exchange (Borsa Istanbul) and traded on the London Stock Exchange and over-the-counter US markets. The remaining 28.09% shares belong to Atatürk and are represented by the Republican People’s Party (CHP) in accordance with Atatürk's will. When Atatürk died, representative rights of his shares were transferred to the CHP, the oldest political party in Türkiye. However, the CHP has no beneficial financial interest in these shares as dividends are assigned to be distributed to two non-profit organizations founded by Ataturk in the early 1930s, the Turkish Historical Society and the Turkish Language Association.
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Telephone: +1 202-473-3800
Fax: +1 202-974-4384
Financial Intermediary - Türkiye Is Bankasi A.S.:
Serhan Sisman - Unit Manager
Phone: +90 212 316 28 24
Address: Head Office Financial Institutions Division, Is Kuleleri Kule 1, Kat, 25, 34330 Levent, Besiktas, Istanbul, Türkiye
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