Turk Ekonomi Bankasi A.S. - II

completed

Summary Of Project Information (SPI)Project NameTurkey-TEB-II     RegionEuropeSectorProject No009106Projected Board DateSeptember 30, 1998Company NameTurk Ekonomi BankasiTechnical Partner and/or Major Shareholders The Colakoglu Group fully owns and controls TEB.Project Cost Including proposed IFC investment Project cost - US$45 million. The project consists of a US$45 million syndicated medium-term loan package to TEB and its leasing subsidiary. This includes a US$15 million A Loan for IFC’s account, and a US$25 million B Loan for the account of participants, both to TEB. A C Loan of US$5 million, also for IFC''s account, would be lent jointly to the Bank and to TEB Leasing (TEBL), TEB''s subsidiary, in order to provide leasing services to small- and medium-sized enterprises (SMEs).Location of project and Description of site TEB is a medium-sized bank headquartered in Istanbul, with 34 branches across the country. Description of Company and Purpose of Project TEB is a commercial bank, lending primarily to medium-sized enterprises. TEB and TEBL are part of the Colakoglu Group, one of Turkey''s largest conglomerates, with interests including financial services, steel production, shipping container production, power generation and shipping. The project would have the dual objectives of easing the medium-term funding constraint of private sector enterprises, including for SMEs, and at the same time supporting the institutional development of the Turkish banking and leasing sectors, through the imposition of stringent covenants. The loans would also lengthen the average maturity of the funding base of TEB and TEBL.Environmental Category and Issues This is an environmental review category (FI) Tier 2 project. TEB and TEBL will be required to undertake an environmental review of each sub-project. In addition, IFC will assess the capability of TEB and TEBL to carry out environmental reviews.Date SPI sent to InfoShop August 26, 1998“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) 473-7711facsimile: (202) 974-4384