RSF Deniz Agri (IFC-45177)

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
Proposed
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
Apr 20, 2023
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
DenizBank A.S.
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 Type(s)
Guarantee
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 325.00 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 5, 2023

Disclosed by Bank Mar 21, 2023

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Contact the EWS Team

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 the IFC, the project aims to support DenizBank A.S., an existing IFC client, with two facilities for a total IFC risk exposure of up to US$ 325 million: (i) an unfunded Risk Sharing Facility for a US$ 400 million loan portfolio, for which IFC will provide a 50% guarantee with US$ 200 million maximum exposure for IFC; and (ii) US$ 125 million investment by IFC in the form of Diversified Payments Rights medium term notes. The use of proceeds for both facilities is to support the Bank's lending program to qualifying agribusiness farmers and MSMEs whose main business or activity is primary agricultural production and/or agricultural product processing facility (which for the avoidance of doubt excludes food and beverage processing) sector in Türkiye.                                              

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.

As stated by the IFC, the overall E&S risks and impacts for the Project is medium and, therefore, it has been categorized as FI-2 in accordance with IFC's Sustainability Policy. 

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.

From the IFC's website:

DenizBank is the 5th largest private bank in Türkiye by total consolidated assets as of end of December 2022. The Bank is 100% owned by Emirates NBD following the acquisition from Sberbank in July 2019. Together with its subsidiaries, Deniz Bank AG (Austria) and CJSC Deniz Bank (Russia), DenizBank functions as a fully commercial independent bank with services across the region. DenizBank’s operations in Türkiye are the key driver of the consolidated business with 670 branches in Türkiye (and one offshore branch in Bahrain), accounting for 84% of total assets as of end of December 2022. Deniz Bank AG with 13 branches in Austria and 7 in Germany accounted for 18% of total assets as of end of December 2022 while the Russian subsidiary accounts for less than 1% of total assets. The Bank has a diversified loan portfolio across various sectors. Tourism and agriculture are priority sectors for the Bank and account for the top two sector concentrations comprising 10% and 7% respectively of its performing loan portfolio as of end of December 2022.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Emirates NBD Parent Company Finance

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: 202-473-3800
Fax: 202-974-4384

Financial Intermediary - DenizBank AS:

Nimet Sinem Yahsi - SVP, Structured Finance and Sustainability
Phone: +90 212 348 54 53
Email: NimetSinem.Yahsi@denizbank.com
Address: Deniz Tower, Büyükdere Caddesi No: 141, Esentepe, Istanbul 34394, Türkiye
Website: www.denizbank.com

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

How it works

How it works