Turkey: COVID-19 Credit Line Project (AIIB-000381)

Regions
  • Europe and Central Asia
Geographic location where the impacts of the investment may be experienced.
Countries
  • Turkiye
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • Asian Infrastructure Investment Bank (AIIB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
U
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
Jun 30, 2020
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
Turkiye Sinai Kalkinma Bankasi (TSKB), Turkiye Kalkinma ve Yatirim Bankasi (TKYB) (Govt. of Turkiye)
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Education and Health
  • Finance
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)
$ 500.00 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)
$ 500.00 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
Other Related Projects
Primary Source

Original disclosure @ AIIB website

Updated in EWS Jul 7, 2024

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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.

According to project documents, this proposed Turkey COVID-19 Credit Line Project would provide sovereign-backed short-term credit lines to two of Turkey's development banks and existing AIIB Clients, Turkiye Sinai Kalkinma Bankasi (TSKB) and Turkiye Kalkinma ve Yatirim Bankasi (TKYB) to alleviate liquidity constraints faced by infrastructure-related companies, mid-caps and Small and Medium Enterprises serving the transport, energy, water, sustainable cities (including healthcare), information and communications technology, and eligible other productive sectors.

This project will be processed under the AIIB's COVID-19 Recovery Facility, a framework designed to assist members in responding to the COVID-19 pandemic. These credit lines will not be used for infrastructure project finance, already covered in existing AIIB Projects TSKB Sustainable Energy and Infrastructure On-lending Facility (2018) and TKYB Renewable Energy and Energy Efficiency On-Lending Facility (2019).

The expected date of board review is May 2020.

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

The AIIB categorized the project E&S risk as 'FI'.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.
Financial Intermediary
A financial intermediary is a 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 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 Bloomberg, Turkiye Sinai Kalkinma Bankasi Anonim Sirketi is a private investment and development bank. The Bank offers medium and long term loans, and treasury, securities underwriting, mergers and acquisitions consulting, research, and securities brokerage services. Turkiye Sinai Kalkinma Bankasi serves customers in Turkey.

As stated on the company's website, Turkiye Kalkinma ve Yatirim Bankasi A.S. (TKYB) was founded under the name of Devlet Sanayi ve Isci Yatirim Bankasi (State Industry and Laborer’s Investment Bank Ltd -DESIYAB) A.S.. In 2018, the Bank was restructured and renamed as the Development and Investment Bank of Turkiye (TKYB).


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.

AIIB Team Leaders:

Stefan Shin / Project Team Leader and Principal Investment Officer / stefen.shin@aiib.org

Francisco Fortuny / Project Team Leader and Private Sector Operations Specialist / fj.fortuny@aiib.org

Financial Intermediaries -

Turkiye Sinai Kalkinma Bankasi (TSKB):

Meral Murathan /  Executive Vice President, Financial Institutions & Investor Relations and Development Finance Institutions

murathanm@tskb.com.tr

Turkiye Kalkinma ve Yatirim Bankasi (TKYB):

Özlem Cinemre / Executive Vice President, Treasury & Financial Institutions

ozlem.cinemre@kalkinma.com.tr

ACCOUNTABILITY MECHANISM OF AIIB

The AIIB has established the Accountability Mechanism for Project-Affected People (PPM).  The PPM provides “an opportunity for an independent and impartial review of submissions from Project-affected people who believe they have been or are likely to be adversely affected by AIIB’s failure to implement the ESP in situations when their concerns cannot be addressed satisfactorily through Project level GRMs or AIIB Management processes.” Two or more project-affected people can file a complaint.  Under the current AIIB policy, when the bank co-finances a project with another development bank, it may apply the other bank's standards. You can refer to the Project Summary Information document to find out which standards apply.  You can learn more about the PPM and how to file a complaint at: https://www.aiib.org/en/about-aiib/who-we-are/project-affected-peoples-mechanism/how-we-assist-you/index.html.

The complaint submission form can be accessed in Arabic, Bahasa Indonesia, Bengali, Chinese, English, Tagalog, Hindi, Nepali, Russian, Turkish, or Urdu. The submission form can be found at: https://www.aiib.org/en/about-aiib/who-we-are/project-affected-peoples-mechanism/submission/index.html.




 

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