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Projects

Summary of proposed guarantee

Summaries of proposed guarantees are provided prior to Board consideration and before final contract signing, and they are therefore subject to change. Project briefs are disclosed after Board consideration and contract signing and reflect the terms of the project at the time of contract signature. Environmental and Social Review Summaries are provided for projects assigned an Environmental Assessment Category of A or B.

 

Project name
Orfin Finansman AS
Project ID
12360
Fiscal year
2015
Status
Proposed
Guarantee holder
RCI Banque S.A
Investor country
France
Host country
Turkey
Environmental category
FI
Sector
Banking
Date SPG disclosed
August 01, 2014
Projected Board date
September 10, 2014
Gross exposure
 $64.1 million
Project type
Non-SIP

Project description

This summary covers a shareholder loan from RCI Banque SA of France (RCI) to Orfin Finansman AS in Turkey. The investor has applied for a MIGA guarantee of €47.5 million ($64.1 million equivalent) for a period of up to seven years against the risk of transfer restriction.

The project involves the expansion of operations of Orfin Finansman AS in Turkey financed through a €50.0 million shareholder loan from RCI, a wholly owned subsidiary of Renault Group specializing in financing activities for the Renault Group and Nissan Group brands in the countries where they operate. Orfin provide loans to both individuals and corporate customers for the purposes of acquiring Renault and Dacia vehicles, insurance to provide coverage to creditors in case of unforeseen events, and extended warranties for the sale of new cars.

Environmental Categorization

The project is a category FI-3 under MIGA’s Policy on Environmental and Social Sustainability, because the existing and proposed portfolio includes financial exposure to business activities that predominately have minimal or no adverse environmental and social impacts.

Development Impact

The shareholder loan aims at improving the liquidity position of Orfin and allowing the company to increase the competitiveness of interest rates. This should result in more affordable financing options for clients. The project is also expected to enhance access to credit for individuals and small and medium-size enterprises across Turkey.

MIGA’s proposed support for this project is aligned with the World Bank Group’s Country Partnership Strategy for Turkey, which calls for deeper and broader financial markets to promote investment and competitiveness.

 
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