Hepsiburada Online Retail

disbursing

Project Description This PSD relates to a historical Bank project approved some years ago, and does not represent a new approval, or allocation of new funds.  Disclosure of this PSD was deferred in accordance with the transparency framework in place at the time, but due to an administrative oversight, was not subsequently disclosed The Bank approved equity commitment of up to USD 25 million in an investment vehicle in order to effect the purchase of a 25% shareholding into Hepsiburada (the Project), one of the leading players in the Turkish online retail sector. Project Objectives The transaction was designed to support the Project’s ambitions to improve its current IT infrastructure and launch its marketplace service, in turn assisting the Turkish retail sector to become more efficient and competitive by increasing overall asset utilisation rates as well as lowering search costs. Transition Impact The transaction targeted a number of transition objectives: (i) improving standards of corporate governance and business conduct in an important – formerly family-owned – company, including through formalising the structure and composition of the Board, and introducing independent audit and steering committees, (ii) expanding the market by assisting in launch of a new marketplace platform capable of facilitating market access for smaller suppliers, (iii) demonstrating successful restructure including optimisation of logistics infrastructure and efficient operation. Additionality The Bank’s additionality was derived from the institutional credibility that its participation afforded to the Project, and the implications of its confidence in the client’s capacity to raise the entire amount of equity required to effect its plans. Environmental and Social Summary The project was found to be Category B, based on an environmental and social due diligence report prepared by an independent consultant.  Overall management of environmental and occupational health and safety matters were analysed, and formalised systems were agreed, implemented in accordance with an agreed Environmental and Social Action Plan. Technical Cooperation n/a - none