Finansbank DPR 2

completed

Finansbank A.S. (“Finansbank” or the “Bank”) is the 5th largest private bank in Turkey and one of the fastest growing private banks in the country with a comprehensive network of branches, and a market share of 4.2% based on net loans as of December 2014. The bank is owned 99.8% by the National Bank of Greece (“NBG”) group. The balance is listed on the stock exchange. The proposed Project is for IFC to make a second round of investment of up to US$100 million in Finansbank’s new notes issuances of up to US$280 million from its existing Diversified Payments Rights (“DPR”) securitization facility. IFC’s proposed investment is targeted at increasing lending to MSMEs in Turkey, consistent with IFC’s strategic priorities for the country. Although the MSMEs represent almost 80% of total employment in Turkey, loans made to MSMEs represent only about 38% of the total loans. Access to finance is perceived as the single most severe obstacle to growth by MSMEs, according to the 2008 enterprise survey conducted by the World Bank. The proposed Project would deepen IFC’s relationship with Finansbank and help expand its footprint in financing MSMEs by supporting the development of its product and service offerings tailored to the specific needs of this underserved segment.