GEFF – YKB DPR

Project Description

The EBRD has provided USD 52.8 million financing to Yapi ve Kredi Bankasi A.S. (“YKB”) under YKB’s existing Diversified Payment Rights (“DPR”) programme. The proceeds of the financing are USD 52.8 million under the Green Economy Financing Facility (“GEFF”), of which USD 2.8m co-financed by the Clean Technology Fund (“The Project”).

Project Objectives

The Project will enable YKB to access long-term funding and diversify its funding sources.

Under GEFF, The Project aims to support green economy investments including among others energy efficiency, renewable energy and climate resilience measures. Funds may also be on-lent to vendors and producers of eligible material and equipment covered by the Green Technology Selector for Turkiye. Cooperation will also be sought with YKB and sub-borrowers on the mainstreaming of corporate climate governance (“CCG”) and gender-responsive on-lending and better integration of climate change and gender equality considerations into YKB’s lending strategies and practices. The financing will be supported by Technical Cooperation (“TC”) as envisaged under the GEFF. Concessional financing will also be available to support YKB to integrate climate change into their corporate governance approach.

Transition Impact

ETI score: 70

The Project will contribute to Green and Well-governed TI qualities. It promotes the transition to environmentally sustainable, low-carbon and climate-resilient economies in Turkiye, it will also contribute to YKB`s ambitions for implementing specific corporate climate governance practices.

Client Information

YAPI VE KREDI BANKASI AS

YKB’s total assets were EUR 52bn and equity was EUR 4.9bn as of 1H23. YKB is rated B3 stable by Moody’s and B- stable by Fitch.

Koc Group owns 61.17% of YKB and the remaining 38.83% of shares are publicly traded on Borsa Istanbul (BIST).

EBRD Finance Summary

USD 50,000,000.00

Total Project Cost

USD 52,799,996.00

Additionality

The additionality stems from i) financing structure that supports YKB in acquiring longer-term external financing, contributing to diversification of YKB’s funding ii) an innovative green finance instrument that integrates aspects such as climate and ESG risk considerations into the financing structure.

Environmental and Social Summary

Categorised FI (ESP 2019). YKB is an existing client of the Bank. YKB will be required to continue to comply with EBRD’s Performance Requirements (PRs) 2, 4 and 9, and continue to implement the applicable EBRD’s E&S Risk Management Procedures for Financial Institutions and submit Annual Environmental and Social Reports to the Bank.

YKB will be required to implement the E&S Eligibility Criteria for Renewable Energy Projects as part of the GEFF, as applicable for each sub-project. The Project has the potential to include solar PV sub-projects. Such sub-projects will be managed in line with ‘The Proposed Management Approach for Solar Supply Chain Risk Management’ (CS/FO/21-35), (CS/FO/21-35 (Add 2)) and any subsequent guidance developed under that approach.

The project has defined uses of proceeds and is Paris aligned based on the application of the Bank’s Paris alignment methodology for indirect finance.

Technical Cooperation and Grant Financing

GEFF Turkiye is supported by a TC programme for a total amount of up to EUR 7.1 million, with initial funding provided by the Clean Technology Fund (EUR 1.5m), the Turkiye EBRD Cooperation Fund (EUR 0.35m) and the EBRD SSF (EUR 0.5m). Additionally, EUR 21.5 million of concessional co-financing is provided by the CTF in support of the Facility.

Company Contact Information

Ezgi Bezel
Ezgi.Bezel@yapikredi.com.tr
+90 212 339 7358
+90 212 339 60 60
www.yapikredi.com.tr
Levent Mah. Büyükdere Cad. Çamlik Sok. Yapi Kredi Plaza D Blok, Levent, Besiktas, Istanbul, Turkey

PSD last updated

29 Sep 2023

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

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General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD’s Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank’s countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.