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TKYB - Disaster Response Credit Line

Türkiye | Financial Institutions

Identification Code:: OP/23/0005
Total Operation Cost:: 5.000.000 EUR
Maturity:: 84 months
Operation Status:: BSTDB Approved Amount – Approval Date

5.000.000 EUR – 27 Apr 2023
: BSTDB Signed Amount – Signed Date

5.000.000 EUR – 14 Sep 2023
: Status:
Active
Description and Purpose of the Operation:: TKYB - Disaster Response Credit Line
Countries of Operation:: Türkiye (100,00%)
Financial Product:: SME's
Sector:: Financial Institutions
Domain:: Public
Borrower/Client:: Disaster Response Credit Line to the Development and Investment Bank of Turkey
Co-Financers/Participants:: N/A
Guarantors/Sponsors:: N/A
Developmental and Regional Cooperation Impact:: The operation will have favorable albeit modest economic benefits for the Turkish economy, the most relevant being the tax revenue gains from economic activity, increase/support in/of employment, a potential increase in export capacity and competitiveness, and multiplier effects for other parts of the economy. Additionally, given that the facility is designed for the earthquake-hit regions, it will likely have humanitarian elements also. The regional cooperation element is similarly expected to be modest given the size of the loan compared to the size of the Turkish economy. 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.
Environmental Classification and Impact:: The Operation is screened Environmental and Social (E&S) Category FI as per the 2014 E&S Policy. The loan will be allocated to an existing Borrower that already has experience in applying BSTDB E&S requirements for FI Clients and which has developed own E&S management system and integrated it in the overall portfolio cycle. Tranche A is expected to contribute to disaster relief and recovery with immediate positive social, economic, environmental and local infrastructure impacts. Tranches B and C have distinctive climate benefits and target primarily climate mitigation activities that reduce GHG emissions as the main contributor to climate change, climate adaptation activities that decreases vulnerabilities to climatic impacts, and environmental protection activities that promote sustainable use of resources, pollution prevention and control, protection and restoration of biodiversity and ecosystem services. The Operation will contribute to meeting the objectives of the Climate Change Strategy of BSTDB and the shareholders’ climate commitments under the Paris Agreement by supporting efforts that lead to decarbonization of their economies.
Operation Leader:: Financial Institutions I
E-mail:: fi1@bstdb.org