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Turk Eximbank 2 - Trade Finance Facility

Türkiye | Financial Institutions

Identification Code:: OP/20/0031
Total Operation Cost:: 50.000.000 EUR
Maturity:: 24 months
Operation Status:: BSTDB Approved Amount – Approval Date

50.000.000 EUR – 30 Nov 2020
: BSTDB Signed Amount – Signed Date

50.000.000 EUR – 14 Dec 2020
: Status:
Completed
Description and Purpose of the Operation:: The Facility to support Turk Eximbank's activities in trade financing (export) sector in Turkey. By working with Turk Eximbank, BSTDB will be able to reach a larger number of exporting companies in Turkey and contribute to the increase of export potential development in the country. BSTDB will promote job creation, income generation, improved companies’ infrastructure, and increasing trade turnover between BSEC countries.
Countries of Operation:: Türkiye (100,00%)
Financial Product:: Trade Finance
Sector:: Financial Institutions
Domain:: Public
Borrower/Client:: Turkiye Ihracat Kredi Bankasi A.S. (Turk Eximbank) is an investment and development bank formed as a joint stock company located in Istanbul, Turkey, and fully owned by the government. The bank accounts 20 branches and 11 liaison offices and supplies an extensive line of financing products to international contractors, investors, shippers, tourism operators, and other cross border businesses.
Co-Financers/Participants:: n/a
Guarantors/Sponsors:: n/a
Developmental and Regional Cooperation Impact:: Operation involves EUR 50 million two year Trade Finance facility to Turk Eximbank. The proceeds to be used for on-lending to exporting sub- borrowers in line with Turk Eximbank’s mandate. In view that almost 10% of total exports from Turkey are to BSTDB member countries and given the strong presence of Turkish contractors in the region, there is high likelihood that operation will have contribution to the regional cooperation.
Environmental Classification and Impact:: Turk Eximbank has developed a comprehensive environmental and social (E&S) management system and has fully integrated it into the export credit portfolio management. The system is based on existing best practices applied in credit export transactions and the general E&S due diligence approach in financing, including of those developed by OECD, IFC, WB and United Nations Guiding Principles for Business and Human Rights. For the purpose of this Operation the Borrower will be required to continue to adhere to the established internal E&S system, rules and procedures, and observe BSTDB’s E&S Exclusion List.
Operation Leader:: Financial Institutions I
E-mail:: fi1@bstdb.org