IFC, EBRD partner up with Turkey's Odeabank

DAILY SABAH
ISTANBUL
Published 27.06.2016 20:42

The International Finance Corporation (IFC) and the European Bank for Reconstruction and Development (EBRD) will join the capital increase at Odeabank, the Turkish subsidiary of Lebanon-based Bank Audi, to become partners in the bank.

The IFC, a member of the World Bank Group, and the EBRD have been involved in a TL 1 billion ($330 million) capital increase at Odeabank.

According to a statement from Odeabank, the IFC and the ERBD contribute a lira-dominated amount that is equivalent to $110 million and $90 million to the bank's capital increase, respectively. Around $38.5 million of IFC'S total contribution of $110 million is covered by IFC Financial Institutions Funds (FIG Funds). The rest of Odeabank's capital increase will be provided by the principal stakeholder, Bank Audi, and leading Middle Eastern investors. Following the capital increase, Bank Audi will remain the largest stakeholder in Odeabank with a share of more than 75 percent.

The statement revealed that a capital increase will be finalized in accordance with legal regulations stipulated by the Banking Regulation and Supervision Agency (BDDK) and other usual terms. It said, "Additional financial facilities to be offered by capital increase will contribute to the expansion of financing that Odeabank provides for the Turkish private sector, the funding of large-scale infrastructure projects and will help small- and medium-sized enterprises (SMEs) have easier access to the financing that they need." As part of the agreement, Odeabank will increase its capital by 42 percent. According to the bank's website and Public Disclosure Platform (KAP) notices, it has TL 2.38 billion of paid capital currently.

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