Earthquake Relief Facility

completed

Company NameAlternatifbank, Demirbank, Finans Bank, Kocbank, Ottoman Bank, Oyak Bank and Turk Ekonomi Bankasi Technical Partner and/or Major Shareholders.The EarthquakeRelief Facility would comprise individual lines of credit for IFC’s own account to existing banking clients of IFC in Turkey. An initial discussion with seven of these banks, namely Alternatifbank, Demirbank, Finans Bank, Kocbank, Ottoman Bank, Oyak Bank and Turk Ekonomi Bankasi, has shown strong interest. The banks are owned by the Anadolu Group, Cingillioglu Group, Fiba Group, Koc Group, Dogus Group, Oyak Group and the Colakoglu Group respectively, all strong groups with whom IFC has a long-standing relationship.- Project Cost Including proposed IFC investmentProject cost: $50 million. The individual lines of credit would amount to IFC A loans of $7 million on average to each bank with a maximum of $15 million to each.- Location of project and Description of siteAll of the seven banks are located in Istanbul, Turkey. Several of the banks have extensive nationwide branch networks and all of the banks have exposure to the areas affected by the earthquake, namely Izmit, Bursa and Adapazari.- Description of Company and Purpose of ProjectThe facility is available to the above-mentioned banks for on-lending to earthquake-affected companies. One of the main criteria of eligibility is a clearly defined prospective client pipeline. The sub loans will be directed to privately owned companies, which have been affected by the earthquake and need funding for working capital purposes, minor reconstruction and bridge funding. The sub loans must be granted to small and medium-sized companies with total assets below $10 million and should amount to below US$2 million per client. A part of the loan may, at the discretion of the banks, be utilized through their leasing subsidiaries.- Environmental Category and IssuesThis is an FI Type 2 project. Each bank will be required to undertake an environmental review of each subproject. IFC will assess each bank’s capability to carry out environmental reviews. Each bank will be required to submit an annual environmental performance report.Date SPI sent to InfoShop October 15, 1999“This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporation’s Board of Directors. It is provided for the purpose of enhancing the transparency of IFC’s activities and should not be construed as presuming the outcome of IFC Board consideration.”For Additional Information contact: Corporate Relations Unit Telephone: (202) 473-7711Fax: (202) 974-4384