Turkiye Garanti Bankasi A.S. (Garanti Bank)

completed

Summary Of Project Information (SPI)Project NameTurkey-Garanti Bank Securitized Financing     RegionEuropeSectorProject No007029Projected Board DateMay 31, 1997Company NameTurkiye Garanti Bankasi A.S.Technical Partner and/or Major Shareholders Garanti Bank is majority owned by the Dogus Group, a diversified Turkish conglomerate with significant interests in the financial sector. The Group is also active in construction, manufacturing, food processing, tourism and media.Project Cost Including proposed IFC investment US$119 million, including an IFC A Loan of up to US$15 million, an IFC B Loan of US$100 million (of which up to US$10 million may be for IFC’s own account) and an interest rate swap with loan equivalent exposure of up to US$4 million for IFC’s account.Location of project and Description of site The project involves the provision of medium-term funding to Garanti Bank for on-lending to private sector companies located throughout Turkey. Garanti Bank is headquartered in Istanbul.Description of Company and Purpose of Project The project involves the structuring of a financing package which will enable IFC to introduce a new mechanism for the provision of medium term funding to Turkish enterprises. The mechansim involves the securitization of the IFC B Loan in order to tap a new investor base--US institutional investors such as insurance companies and pension funds. IFC has previously used this structure for a limited number of clients in Latin America. Garanti Bank, one of Turkey’s larger private sector banks, is particularly well-suited for this transaction due to its excellent reputation both within Turkey and abroad. The Bank will on-lend the proceeds of the IFC financing package to Turkish private sector companies for their modernization and expansion purposes and for pre-export finance.Environmental Category and Issues This is a category FI project according to IFC’s environmental review procedure. For relevant operations, Garanti Bank will be required to undertake an environmental review of eligible borrower’s environmental performance and each sub-project’s compliance with the Government of Turkey’s environmental health and safety laws, regulations and standards as well as applicable World Bank policies and guidelines. In addition, IFC will assess Garanti Bank’s capability to carry out environmental reviews.Date SPI sent to PIC April 15, 1997For Additional Information contact: Corporate Relations Unit -telephone: (202) 473-7711facsimile: (202) 974-4384