World Bank building

MIGA’s goal is to promote foreign direct investment into developing countries to support economic growth and more.

Young woman bending down to tending to her outside chores

Explore different types of political risk insurance guarantees provided to investors and lenders.

Hyundai building

Explore global projects that support economic growth, reduce poverty and improves people’s lives.

Hands husking peas into a basket full of peas

Learn about the progress MIGA is making in its mission to support economic growth, reduce poverty and improve people’s lives.

Stay Connected
x
Turkey

Orfin Finansman AS

$57.7 million
Banking
Project Brief
Active

Project Facts

Project Facts

Project Facts

Turkey
Project ID
12360
Guarantee Holder
RCI Banque S.A
Investor Country
France
Environmental Category
FI
Date SPG Disclosed
August 01, 2014
Projected Board Date
November 21, 2014
Project Type
Non-SIP
Fiscal Year
2015

Project description

On December 31, 2014, MIGA issued a guarantee of $57.7 million covering a shareholder loan from RCI Banque SA of France (RCI) to Orfin Finansman AS in Turkey. The coverage is 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.

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 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.