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IS Leasing 3

Türkiye | Financial Institutions

Identification Code:: OP/18/0050
Total Operation Cost:: 30.000.000 EUR
Maturity:: 60 months
Operation Status:: BSTDB Approved Amount – Approval Date

30.000.000 EUR – 23 Nov 2018
: BSTDB Signed Amount – Signed Date

30.000.000 EUR – 28 Mar 2019
: Status:
Completed
Description and Purpose of the Operation:: IS Leasing 3
Countries of Operation:: Türkiye (100,00%)
Financial Product:: SME's
Sector:: Financial Institutions
Domain:: Private
Borrower/Client:: 3rd SME Facility to Is Leasing
Co-Financers/Participants:: N/A
Guarantors/Sponsors:: N/A
Developmental and Regional Cooperation Impact:: The operation can have favorable albeit modest economic benefits for the Turkish economy, the most relevant being the tax revenue gains from economic activity, increase in employment, increase in export capacity and competitiveness, and multiplier effects for other parts of the economy. The regional cooperation element is similarly expected to be modest. Other BSTDB countries are important trade partners for Turkey so to the extent SMEs benefiting from financing from the operation engage in export activities with other BSEC countries, there will be regional cooperation benefits. The operation is consistent with the sectoral and operational priorities outlined in the BSTDB’s Medium Term Strategy and Business Plan 2015-18 and the Country Strategy for Turkey 2015-2018.
Environmental Classification and Impact:: The operation is a repeat financing, the Borrower being a Turkish non- banking financial institution offering finance leasing for equipment in such sectors as metal industry, real estate, transportation, tourism, health care, textile and forestry/forest products, food and beverages. The E&S assessment has been carried previously and it concluded that the Borrower had instituted, as part of the IFC financing energy investments and energy efficiency, an appropriate environmental management system, which cover only the leasing transactions. The portfolio analysis shows that the largest sectors financed are represented by metal industry, construction and transportation, sectors which according to the environmental and social risks classification are categorized as high and medium. The Borrower follows the IFC Exclusion List, which is compatible with the E&S Exclusion List of BSTDB. Considering the findings of the environmental assessment it is deemed necessary for the Borrower to cover under its environmental management system all its leasing operations, especially those in metal industry, construction and transportation. Given that the Borrower appears to have already the basic experience in managing the environmental risks and impacts associated with its leasing operations in the energy sector, extending the environmental management to its entire portfolio is not likely to represent to much burden on the Borrower.
Operation Leader:: Financial Institutions I
E-mail:: fi1@bstdb.org