Odeabank Equity (IFC-37925)

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
  • 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
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
FI
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 27, 2016
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
ODEA BANK ANONIM SIRKETI
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Agriculture and Forestry
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Amount (USD)
$ 75.00 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)
$ 350.00 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.
Primary Source

Original disclosure @ IFC website

Updated in EWS Jul 29, 2018

Disclosed by Bank Jun 27, 2016

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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.

The proposed IFC investment consists of participation in a capital increase for Odeabank A.S. in the Republic of Turkey. According to bank documents, the Project will help the Bank to build on its small and medium enterprises loan portfolio and support its existing digital banking activities to reach out to micro and other underbanked segments of the population.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

The sponsor of the Project is Bank Audi s.a.l. Founded in 1830 and incorporated in 1962 as a private joint stock company with limited liability, Bank Audi s.a.l is one of Lebanon’s largest commercial banks, with a nationwide 82-branch network and a network of 217 foreign branches across the Middle East, North Africa, Turkey and Europe. Employing nearly 7,000 people via its Lebanese and international operations, the group is profitable and well capitalized, with consistently strong financial indicators. Total assets and total equity reported to be US$42 billion and US$3.3 billion, respectively, with a market capitalization of around US$2.5 billion as of end-of 2015.

Odeabank’s shareholding structure as of December 31, 2015 is:

Shareholder
Percentage of ownership (%)
Bank Audi s.a.l.
93.83%
Audi Private Bank s.a.l
6.06%
Others
0.11%

The total capital increase is going to be for TRY1 billion (around US$350 million equivalent) where IFC is considering, for its own account, investing up to US$75 million equivalent in local currency in the form of common shares. The FIG Fund, managed by IFC Asset Management Company, a wholly owned subsidiary of IFC, is co-investing with IFC in the transaction.

You can learn more about IFC Asset Management Company at: https://www.ifcamc.org/funds

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.

Founded in November 2012, Odeabank has been a growing player in the Turkish banking sector ranking twelfth in terms of asset size which reached around US$11 billion and a capital base of around US$0.9 billion as of year-end 2015. The Bank has 55 branches and around 1,560 employees offering a wide spectrum of universal banking products among key segments including corporate, commercial, small and medium enterprises and retail banking. The Bank has adopted a direct banking model with effective utilization of alternative distribution channels and has been identified as a potential partner for IFC to work with in supporting digital banking in Turkey.


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.

Ms. Estel Gurdogan
Director
Odeabank A.S.
Levent 199, Buyukdere Caddesi No: 199
Kat: 33-39
34394 Sisli/Istanbul
Tel: +90 212 304 85 20
Fax: +90 212 304 84 45
http://www.odeabank.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/

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How it works