Project Description

A senior unsecured loan of up to EUR 15 million to ING Bank A.S. ("INGT" or "the Company"), for on-lending to women-led SMEs under the Türkiye Women in Business ("TurWiB II"), a blended programme established under the Financial Intermediaries Framework ("FIF").

Project Objectives

TurWiB II is an integrated and dedicated programme supporting women entrepreneurship and women-led SMEs. EBRD financing will be accompanied by (i) a technical cooperation programme to help INGT to build their internal capacity to better serve this segment, and (ii) a risk sharing mechanism supported by the Turkish Credit Guarantee Fund ("CGF") to stimulate lending on a sustainable basis. In addition, women entrepreneurs will be provided with advisory, mentorship and networking opportunities, facilitating their access to know-how and non-financial development services, as well as access to markets.

Transition Impact

ETI score: 70ETI score: 70The Project will contribute to Inclusive and Competitive transition impact qualities. It supports strengthening the role of women-led SMEs in the economy, putting emphasis on under-served women entrepreneurs, including first-time borrowers and those based outside of main commercial centres in Türkiye. Moreover, as part of the Program, direct engagement with women entrepreneurs and women-led SMEs serves to improve their competitiveness and resilience, while close engagement with PFIs on delivery of non-financial services serves to create a demonstration effect of the value of these services for their clients.

Client Information

ING BANK ASING Bank A.S. ("INGT", the "Client", or the "Company") is the 13th largest bank in Türkiye by asset size and rated B- (stable) by Fitch. As of 1H 2023, INGT had EUR 4.9bn of total assets, EUR 2.5bn of loan book, EUR 528m of equity based on bank-only financials. INGT is a member of the Netherlands based ING Group, which is one of the world's key financial institutions.

EBRD Finance Summary

EUR 15,000,000.00

Total Project Cost

EUR 15,000,000.00

Additionality

Additionality of the project stems from the following sources: (i) Financing structure: the project will enable the Company to obtain long-term financing which is scarce in the market; (ii) Standard-setting: the project is expected to support INGT in adapting sub-loan terms and to allocate the funds towards the needs of women-led SMEs, improving their access to finance.

Environmental and Social Summary

INGT is a new Client and will be required to comply with PRs 2, 4 & 9, and further, implement and comply with EBRD's ESP 2019 ESMS Risk Management and categorisation including the EBRD's E&S Exclusion and Referral List. INGT is also required to comply with relevant EBRD's Environmental & Social (E&S) Procedures for Micro, SME and Corporate Lending as well as Trade Finance. The E&S due diligence for INGT included the review of the E&S due diligence questionnaire and the Client's Environmental and Social Documentation. INGT has their own Environmental and Social Risk (ESR) and Climate Risk Assessment Procedure and sectoral guidelines and also benefits from the E&S Policies of the Netherlands based ING Group.

Technical Cooperation and Grant Financing

TurWiB II is supported by a TC package to PFIs funded by the EBRD SSF and Turkiye-EBRD Cooperation Fund Account. An earlier phase of this programme was co-funded by the European Union and SSF.

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.