Otokoc EV (IFC-49703)

Regions
  • Europe and Central Asia
Geographic location where the impacts of the investment may be experienced.
Countries
  • Kazakhstan
  • Turkiye
Geographic location 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
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Feb 20, 2025
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Otokoc Otomotiv Ticaret ve Sanayi A.S.
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Energy
  • Industry and Trade
  • Transport
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 150.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. 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, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 450.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Primary Source

Original disclosure @ IFC website

Updated in EWS Feb 12, 2025

Disclosed by Bank Jan 21, 2025

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

As stated on the project disclosure page, the IFC is considering a loan of up to US$150 million (mn) or equivalent to finance Otokoç Otomotiv Ticaret ve Sanayi A.S.’s (“Otokoç” or the “company”). The proceeds of the A Loan to be provided by IFC shall be used for general corporate purposes including working capital finance and purchase of Electric Vehicles (EVs) in Türkiye and potentially in Kazakhstan. Otokoç, Türkiye’s largest automotive retail and rental company is founded in 1928; it operates in nine countries with over 3,800 employees. It is the largest car sales, rental and sharing (rental by the hour) company in Türkiye as of 2023. Otokoç is 96% owned by Koç Holding A.S. (“Koç Holding”), whose companies (together the Koç Group) form the largest industrial conglomerate in-and economic backbone of Türkiye. IFC has supported multiple Koç Group companies including Yapi Kredi Bank, Otosan and Arçelik among others, all of which have good Environmental, Health and Safety (EHS) performances.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

As stated by the IFC, founded in 1928, Otokoç is the largest car retailer and rental company in Türkiye engaged in: (i) selling multiple international brands namely Ford, Volvo, Fiat, Alfa Romeo, Jeep, and Maserati; (ii) car rental services under major brands like Budget and Avis (iii) used car sales for sale of second hand cars defleeted from its rental segment and sourced from third parties; and (iv) other revenue streams from: car service, car spare parts sales etc. Otokoc currently operates at 405 points in 9 countries between Eastern Europe and Central Asia. 

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
Koc Holding AS Parent Company Industry and Trade owns Otokoc Otomotiv Ticaret ve Sanayi A.S. Client Transport

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

General IFC Inquiries - IFC Communications:

Address: 2121 Pennsylvania Avenue, NW, Washington DC 20433
Telephone: +1 202-473-3800
Fax: +1 202-974-4384

Client - Otokoç Otomotiv Ticaret ve Sanayi A.S.:

Gökhan Özbek - Treasury Leader
Phone: +905556120939
Email: gokhano@otokocotomotiv.com.tr
Address: Aydinevler Mah. Saygi Cad. No:60 Maltepe / Istanbul
Website: https://www.otokoc.com.tr/

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://disclosures.ifc.org/#/inquiries

If you believe that your request for information from IFC has been unreasonably denied, or that this Policy has been interpreted incorrectly, you can submit a complaint at the link above to IFC's Access to Information Policy Advisor, who reports directly to IFC's Executive Vice President.

ACCOUNTABILITY MECHANISM OF IFC/MIGA

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

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How it works