Project Finance and Corporate Loans
It can be clearly stated that Development and Investment Bank of Türkiye has made a major financial contribution to various sectors of our country over the last 18 years. It has contributed more than 5 billion USD in financing from international funds to our country through investments in areas such as industry, renewable energy, energy and resource efficiency, circular economy, education, health, wholesale banking, urban infrastructure, and tourism.
By means of project finance and corporate loans, our esteemed Bank extends unwavering support to the pivotal sectors of Türkiye. We empower the manufacturing industry, foster the growth of renewable energy, enhance educational institutions, bolster healthcare services, and much more. Through these strategic endeavors, we not only drive economic growth but also facilitate social progress and champion environmentally conscious development. By providing financial solutions to companies in the manufacturing industry for their needs related to new investments as well as capacity expansion and modernization investments, the Bank promotes employment, competitiveness, and technological product production.
The Bank contributes considerably to Türkiye’s efforts to increase exports and enhance import substitution via its support for Research and Development (R&D) and innovation investments.
By responding to the financing needs of investors in projects (such as hydroelectric, solar, wind, biomass and geothermal power plants) for the efficient and proper use of renewable energy resources and for bringing domestic energy resources into the economy, the Bank supports Türkiye’s goals of increasing energy supply, reducing the use of fossil fuels and reducing external dependence on energy.
Development and Investment Bank of Türkiye takes important steps towards a sustainable economy by financing investments that increase energy and resource efficiency and improve waste management of companies operating in sectors with high energy use intensity such as cement, iron and steel, paper, and ceramics.
In line with Development and Investment Bank of Türkiye environmental sustainability goals, the financial support it provides to waste heat-to-energy generation, wastewater treatment technologies and modernization investments supports important environmental goals such as reducing fossil fuel use and greenhouse gas emissions and increasing recycling.
In the tourism sector, it finances investments in the renovation of existing tourism facilities and supports investments to increase the energy efficiency of buildings. These steps make significant contributions to the development and protection of sustainable tourism.
Investments carried out to expand the accessibility of education and health services and to integrate physical and technological developments into these services are also among the important sectors supported by the Bank. By creating customized financing solutions according to the needs of investors, the Bank contributes to Türkiye’s sustainable development through these investments.
The client can use a corporate loan or an operating loan to obtain long-term financing. For this purpose, a corporate loan or special purpose vehicle (SPV) is formed to obtain a loan for the investment project and a financing package is created. Applications are made to the project finance service where the investment is financed and if the Bank approves the loan, the loan is allocated.
In its wholesale banking services, Development and Investment Bank of Türkiye is able to raise funds through various financial institutions instead of direct lending. This demonstrates the Bank’s ability to offer a wide range of financing solutions.
Creditization Process
| Project Risk Analysis | Feasibility | Project Financing Model | Monitoring Period |
|---|---|---|---|
| Macroeconomic Risks | Technical Evaluation | Loan-Equity Balance | Technical Progress Reports |
| Sectoral Analysis | Financial Evaluation | Working Capital | Environmental Social Monitoring Reports |
| Project Risks | Economic Evaluation | Term | |
| Firm Risks | Project Cash Flow | Project/Credit Guarantees | |
| Company/Group Analysis | Sales and Pricing | ||
| Environmental, Social and Governance (ESG) Risk Analysis | Environmental and Social Risk Evaluation | ||
| Legal Permissions and Legal Status |
The lending process consists of Project Risk Analysis, Feasibility, Project Financing Model and Monitoring Period. In the Project Risk Analysis phase, sectoral and company/group analyses are conducted, while macroeconomic risks, project and company risks are assessed. The feasibility stage involves assessing the technical, financial, economic, legal, environmental, and social feasibility of the project. In accordance with the Environmental and Social Policy, the Bank addresses the risks that may arise from its services and activities from economic, environmental, and social perspectives.
The Bank takes into account the impact assessments of the Environmental and Social Risk Assessment and Monitoring Process in its lending decisions for projects. The Project Financing Model phase involves determining the financial criteria and processes of the project, such as loan/equity balance, working capital, maturity, and project/loan collaterals. Finally, in the Monitoring Period phase, the technical progress of the project and environmental and social monitoring reports are generated, and the loaned project is followed up.
APEX Load Process
| Proje Identification | Loan Program Development and Resource Supply | Intermediary Institution Selection and APEX Loan Agreement Process | Utilization and Reporting |
|---|---|---|---|
| Economic research and strategies of development plans and programs in line with developed projects | Negotiation of loan terms and origination contract with mechanism | Determination of risk limits for possible intermediary financing organizations | Withdrawal of loan amount from the source organization |
| Increasing the competitiveness of SMEs | Ensuring the Republic of Türkiye Treasury and Ministry of Finance guarantee | IISs financial, operational environmental and social their suitability evaluation reports preparation and approval by the source organization | To the IISs utilization |
| Employment | Preparation of project/program application manual | Realization of agreement negotiations with the intermediary organization and signing intermediary financial organization loan contracts (APEX) | Reporting of sub-loans by IISs via our Bank APEX online app |
| Renewable Energy | Review of Sub-loans, approval process and reporting to the source organization | ||
| Energy efficiency etc. | Preparation and evaluation of the program reports | ||
| Negotiation of the project proposal with possible development financing organizations |
APEX Lending process includes Project Identification, Loan Program Development and Funding, Intermediary Selection and Contracting Process, Disbursement and Reporting. In the project definition phase, preliminary economic and thematic research on the project proposal is conducted and negotiations with funding agencies are carried out.
The Loan Program Development phase includes the negotiation of loan terms with resource institutions, signing of the contract, securing the guarantee of the Republic of Türkiye Ministry of Treasury and Finance and preparation of the implementation manual. In the Intermediary Selection and Contracting Process, the financial, operational, environmental, and social suitability of the Intermediary Financial Institutions (IFIs) is assessed, and negotiations and agreements are concluded between the intermediary and the originator.
Finally, at the Disbursement and Reporting stage, the loan amount is transferred from the originating institution to the intermediary institution, and the sub-loans granted by the AFI are reviewed, approved, and reported to the originating institution by the Bank in terms of financial, environmental and social aspects, and program closing reports are prepared and submitted to the originating institutions.