ODEABANK A.S.
Status: Approved investmentWhy disclosure?
FMO is committed to making publicly available relevant investment information that informs stakeholders and enables them to engage directly with FMO on its investments which, in turn, enhances our investment decisions, the design and implementation of projects and policies, and strengthens development outcomes. Learn more
In case of questions
In case of questions, please contact us at disclosure@fmo.nl
Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
Odeabank A.S. is a relatively young innovative mid-sized bank in Turkey. It is a steadily growing bank that is viewed as an ambitious banking pioneer who brings to the market the old concept of commercial and retail banking in a modern efficient way. Despite being established in 2012, it ranks among the top 15 banks in Turkey.
What is our funding objective?
The facility is in the form of a subordinated bond issue of USD 30 mln. Half of it will be used to finance SMEs and the other half for renewable energy projects. In addition to facilitating job creation via SMEs, Renewable energy projects are a strategic growth area for the bank. The facility also supports raising awareness and demand for renewable energy projects in Turkey. It will help to improve the environment, living standards and quality of life by reducing GHG emissions and other pollutants and dependence on fossil fuel and natural gas imports. This facility will also allow Odeabank to strengthen its capitalization.
Why do we fund this investment?
This new transaction offers FMO the opportunity to continue supporting Odeabank to further grow its SME and renewable energy portfolio, while strengthening the bank’s capital. FMO is additional for Odeabank as they currently lack access to the wider capital market, desire to diversify their funding base and have a shortage of long term funding. FMO is an anchor investor as this is the first subordinated bond issue with Odeabank – marking the capital market debut for this bank. FMO's facility will not displace commercial funding.
What is the Environmental and Social categorization rationale?
The project has been categorised as Category A in accordance with FMO’s Sustainability Policy. The Project’s activities are deemed to have potential, significant and adverse environmental and social risks and/or impacts. The Environmental and Social (‘E&S’) risks of the Project are [completed by ESO ]. As part of the Project, Odeabank will be required to apply the EDFI Exclusion List, Turkey E&S laws and regulations and the IFC Performance Standards Framework for the identified Triggered Transactions .
More investments
| Date | Total FMO financing |
|---|---|
| 12/17/2020 | USD 7.50 MLN |
| 12/15/2020 | USD 25.00 MLN |
| 6/21/2022 | USD 35.00 MLN |
- Website customer/investment
- http://odeabank.com.tr
- Region
- Europe & Central Asia
- Country
- Türkiye
- Sector
- Financial Institutions
- Effective date
- 7/24/2017
- Total FMO financing
- USD 22.50 MLN
- Funding
- FMO NV
-
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - A