Overview

CDB provides RMB 3.5 billion loan to VakıfBank for on-lending, general financing, and foreign trade financing purposes

Commitments (Constant USD, 2023)$500,386,935

Commitment Year•2021Country 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: Dec 21, 2021

Last repayment: Dec 20, 2024

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

China Development Bank (CDB)

Receiving agencies

State-owned Banks

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

Implementing agencies

State-owned Banks

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

Loan desecription

CDB provides RMB 3.5 billion loan to VakıfBank for on-lending, general financing, and foreign trade financing purposes

Interest type•UnknownMaturity•3 years

Narrative

Full Description

Project narrative

On December 21, 2021, China Development Bank (CDB Corporation signed a RMB 3.5 billion loan agreement with VakıfBank — a Turkish state-owned bank — for on-lending purposes, general financing needs, and the financing of foreign trade. The loan carries a 3-year maturity and an unknown interest rate.

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%.