Yapi Kredit Bank - SME Asset Guaranteed Bond

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Translated version of this PSD: Turkish The EBRD has invested in Turkish lira denominated SME asset guaranteed bond programme issued by Yapi Kredi Bank (YKB), Turkey. The programme size is up to EUR 300 million rated A3 (local currency) by Moody’s. With its investment EBRD is supporting SMEs operating in the agribusiness sector in the priority regions of Turkey and to SMEs managed or owned by women under the Women in Business initiative. The positive transition impact stems from providing a source of funding that YKB can use to lend in local currency to SMEs including in the priority region and promote women-led businesses. YKB is expected to create a demonstration effect in the capital markets by showing the effectiveness of the bond structure. Yapi Kredi, the fourth largest privately-owned bank by the asset size in Turkey, is a growing Turkish bank with a large regional outreach of 918 branches in more than 70 cities. As of 31 March 2012 total assets of YKB were EUR 50 bln and its customer base reached EUR 27.8 bln, ranking YKB sixth in the market with market share of around 9.2%. The bank is rated Ba3 by Moody’s, BB/Positive by S&P, BBB-/Stable by Fitch. EUR 50 million investment (Turkish lira equivalent). The EBRD is investing in the first issuance of notes within this programme along with the European Investment Bank and the UniCredit Bank Austria AG. EUR 300 million (Turkish lira equivalent). Categorised FI: Through the existing transactions with the EBRD, Yapi Kredi is in compliance with PRs 2 & 9. Yapi Kredi will be required to implement the Bank's E&S Procedures for Corporate Lending and submit Annual Environmental and Social Reports to the EBRD. ESD will work closely with the Operational Team to assist with the Women in Business programme. YKB will continue receiving technical assistance provided under the Turkey MSME Lending Technical Co-operation Programme (TMSMELP) in order to help the bank to enhance its institutional capacity for lending to MSMEs operating in the agribusiness sector.