Sompo Japan Sigorta (f. Fiba Sigorta)

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Translated version of this PSD: Turkish 9.99% equity investment in Fiba Sigorta. Fiba Sigorta has been acquired by Sompo Japan in November 2010. The aim of this first equity investment in Turkey is to assist Sompo Japan in its efforts to integrate Fiba, which will be its first acquisition in EBRD’s countries of operations. EBRD’s experience in the region will provide a cultural bridge and support to Sompo Japan in implementing its business strategy in a new market and more importantly will help to develop the role of insurance sector and the local capital markets. The role of the non-banking financial sector in Turkey is currently limited. Insurance and other non-banking financial institutions, such as pension funds and leasing services, are under-penetrated and underdeveloped (insurance sector represents 1.2% of GDP vs. 8.0% in EU), as are capital markets and the institutional investor base. The EBRD recognizes that there is a need for a much larger and deeper insurance industry to provide risk management tools for general corporate and retail segments and to support the long term development of the local capital markets. In addition, this investment of EBRD and Sompo Japan is expected to strengthen the competition by the introduction of new products and new skills via implementing Sompo Japan’s technological capabilities. Sponsor: Sompo Japan, the second largest non-life insurer in Japan with 29% market share and is rated AA- by S&P. Investee Company: Fiba Sigorta, the 11th largest non-life insurance company operating in Turkey with a focus in retail and SME segments. The Company has a full regional coverage of the Turkish market with a diversified product range. Turkish Liras (TL) 51 million (€25 million equivalent) equity investment TL 51 million (€25 million equivalent) including the pro-rata transaction cost Fiba Sigorta will be required to comply with the EBRD’s Guidelines for Investments in the Insurance Sector, which incorporate both guidelines for insurance underwriting and for the management of investment portfolios. The Guidelines will also require Fiba Sigorta to to comply with EBRD’s Environmental Performance Requirement (“PR”) 9 when making local loans, conduct their business in accordance with PR 2, adhere to the EBRD's Environmental and Social Exclusion and Referral Lists, and submit Annual Environmental and Social Reports to the Bank. This will enable the Company to manage any potential environmental risks that may arise in relation to both the insurance and investment portfolio. None. Joon Park, Senior Banker EBRD Tel: +44 (0)207 338 6517 Fax: +44 20 7338 6105 E-mail: ParkJ@ebrd.com