Projects Financed

Operation Summary

Operation Name:

Aklease, Turkey

Identification Code:

OP/17/0010
Total Operation Cost:20.000.000  EUR
Maturity:

60 months

Operation Status:
BSTDB Approved AmountApproval Date
20.000.000  EUR12 Jun 2017
BSTDB Signed AmountSigned Date
20.000.000  EUR06 Jul 2017
Status: Active
Description and Purpose
of the Operation:

Aklease, Turkey

Countries of Operation:
Turkey100,00 %
Financial Product:

SME's

Sector:

Financial Institutions

Domain:

Private

Borrower/Client:

AKLease, SMEL Facility

Co-Financiers/Participants:

N/A

Guarantors/Sponsors:

N/A

Developmental and Regional Cooperation Impact:

The operation is expected to have favorable albeit modest economic benefits for the Turkish economy, the most relevant being the tax revenue gains from economic activity, increase in employment, increase in export capacity and competitiveness, and multiplier effects for other parts of the economy. The regional cooperation element is similarly expected to be modest. Other BSTDB countries are important trade partners for Turkey so to the extent SMEs benefiting from financing from the operation engage in export activities with other BSEC countries, there will be regional cooperation benefits. The operation is consistent with the sectoral and operational priorities outlined in the BSTDBós Medium Term Strategy and Business Plan 2015-18 and the Country Strategy for Turkey 2015-2018.

Environmental Classification and Impact (summary):

Financing leasing activities through Financial Intermediaries (FIs) implies certain environmental and social (E&S) risks and impacts. These are however limited and are unlikely to generate any significant issues. Nevertheless, the FIs need to have the appropriate basic institutional capacity in order to identify, quantify and mitigate these risks, which is especially relevant when leased assets bear medium or high E&S issues e.g. manufacturing/process equipment, conventional construction and agricultural machinery, buildings and land with non-residential use; and high E&S risks e.g. equipment with potential to cause environmental damage, equipment for extraction, manufacturing, transport or storage of hazardous substances, property and land with previous industrial use. Failure to properly deal with risks associated with such leased assets may not only lead to potential legal non-compliance with local and lending institutionsó E&S requirements, but also have negative financial and reputation consequences on the FI. In this respect, the Borrower provided evidence that it has a basic understanding of the E&S issues related to leasing operations, had adopted appropriate environmental policy and environmental assessment procedures, and had integrated these in its overall portfolio management.

Operation Leader:

Financial Institutions I

E-mail:

fi1@bstdb.org


As of 31 Oct 2017