Turk Ekonomi Bankasi III

completed

TEB had unconsolidated total assets of US$1.7 billion equivalent and US$110 million in shareholders’ equity as of end-March 2001. The main focus of the bank is to provide short-term trade finance to a select client base, which include multinationals and leading Turkish conglomerates. The bank also has a strong private banking business, treasury operations, asset management, and is developing its retail operations.The project would be structured in two tranches. The first tranche, of up to US$15 million would be a subordinated convertible loan to further strengthen the balance sheet of TEB. The second tranche would be a syndicated three-year facility of up to US$20 million for IFC''s own account and up to US$80 million for the account of participant banks, depending on demand.Through the project IFC intends to provide capital to the Turkish banking sector and provide finance to Turkish corporates for the purpose of working capital, investment and trade. By investing in TEB, IFC would send an important signal of support to the Turkish banking system at a time when confidence is low and banking activity is severely constrained. Secondly, Turkish private corporates are constrained by lack of adequately priced finance, a sector which is critical to the recovery of Turkey from the current crisis.