Overview

China Eximbank provides $140 million loan to VakıfBank to finance foreign trade between Turkey and China in 2019

Commitments (Constant USD, 2023)$145,318,249

Commitment Year•2019Country of Activity•TurkeyDirect Recipient Country of Incorporation•TurkeySector•Banking And Financial ServicesFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: Sep 20, 2019

Last repayment (originally scheduled): Sep 19, 2020

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Policy Banks

Export-Import Bank of China (China Eximbank)

Receiving agencies

State-owned Banks

Türkiye Vakiflar Bankasi T.A.O. (VakıfBank)

Loan description

China Eximbank provides $140 million loan to VakıfBank to finance foreign trade between Turkey and China in 2019

Interest type•UnknownMaturity•1 years

Narrative

Full Description

Project narrative

On September 20, 2019, China Eximbank and VakıfBank — a Turkish state-owned bank — signed a $140 million loan agreement to finance trade between China and Turkey. The loan carries a 1-year maturity and an unknown interest rate. VakıfBank General Manager Abdi Serdar Üstünsalih noted that the loan was the first transaction between VakıfBank and China Eximbank.

Staff comments

1. VakıfBank is the second largest bank in Turkey in terms of asset size, established with an initial capital of TL 50 million on January 11, 1954 and later started operating on April 13, 1954. the current ownership structure of the Bank as follows: Republic of Turkey Ministry of Treasury and Finance: 37.45%; Turkey Wealth Fund: 35.99%; VakıfBank Pension Fund: 10.30%; other shareholders: 0.10% and free float: 16.15%.