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PART I: INTRODUCTION
SUPPORTING THE REAL ECONOMY VIA
BILATERAL AGREEMENTS
VakıfBank continues to collaborate with the
European Investment Bank (EIB), the World Bank
and the European Bank for Reconstruction and
Development (EBRD) to provide long-term, low-
cost funding to the real economy.
Due to its successful performance in the
EUR 75 million Greater Anatolia Guarantee
Facility (GAGF-I) secured from EIB through an
agreement in 2010, the second phase (GAGF
II) worth EUR 50 million was allocated to the
VakıfBank in 2015. As part of the project, the
Bank continues to finance SMEs operating in
development priority regions. The said financing
facility has a five-year maturity, and the capital
will be repaid in a lump payment at the end of
the maturity term. As part of GAGF II Project,
EIB allocated to VakıfBank another fund worth
EUR 25 million and the loan agreement for this
tranche was signed on 18 December 2015.
The first EUR 100 million tranche of the
EUR 200 million facility obtained under
the Small and Medium-Sized Enterprises
Project II signed with the EIB in 2014
and guaranteed by the Undersecretariat
of Treasury was used up in 2015. The
loan agreement for the second tranche
of the said facility was signed on 28
May 2015 under the guarantee of the
Undersecretariat of Treasury and VakıfBank
has received the first EUR 50 million on 17
December 2015. The said financing facility
has a five-year maturity, and the capital
will be repaid in a lump payment at the
end of the maturity term.
In addition to the USD 80 million Turkey
Sustainable Energy Financing II Project (TurSEFF
II) secured through an agreement between
VakıfBank and EBRD on 10 May 2013, an eight-
year co-financing facility of EUR 50 million with
a three-year grace period was secured with an
agreement signed with the EIB on 15 July 2013
under the guarantee of Undersecretariat of
Treasury. The second tranche worth
EUR 25 million of the said loan was transferred
to the Bank’s account on 3 December 2015
and VakıfBank continues to disbursement of the
loans as part of the said project.
LOAN AGREEMENTS WITH KFW
The EUR 100 million loan facility extended to
VakıfBank to be used in financing micro, small
and medium-size companies operating in
Turkey, secured through an agreement signed
with KfW in 2013, was transferred to the Bank’s
account on 15 November 2013. This facility was
disbursed in as short as one and a half months.
In recognition of VakıfBank’s success in this
project, work was initiated with KfW on another
loan tranche with the same characteristics. As
a result of these efforts, a loan agreement of
EUR 200 million was signed between the Bank
and KfW on 24 June 2015 under the guarantee
of Undersecretariat of Treasury. This ten-year
facility with a three-year grace period was
transferred to the Bank’s account on 30 July
2015. The said loan represents the largest single
agreement signed by KfW with a Turkish bank.
RESIDENTIAL MORTGAGE COVERED
BOND ISSUANCE PROGRAM
In order to tap into alternative financing
facilities in international capital markets,
VakıfBank set up on 29 July 2015 a EUR 3
billion Residential Mortgage Covered Bond
Issuance Program composed of covered
bonds, which are in use since many years
in developed markets such as Europe as
a funding instrument, and are allowed in
Turkey since the CMB’s 2007 Communique
on Mortgage Covered Bonds. VakıfBank
plans to seize opportunities which could
appear in international markets and
perform its first issuance as part of the said
program in 2016.
THE BEST BOND ISSUANCE
OF THE YEAR AWARD
Turkey’s pioneer bank in the international
capital markets, VakıfBank received the first
prize in the International Bond Issuance of
the Year category at the Bonds & Loans 2015
award ceremony organized by Global Financial
Conferences, considered to be one of the most
prestigious awards for the Turkish financial
sector and capital markets, for issuing Turkey’s
first ever Basel III-compliant subordinated notes–
amounting USD 500 million in january.
FOREIGN TRADE AND CORRESPONDENT
BANKS
VakıfBank’s robust correspondent bank network,
comprised of 1,643 banks and financial
institutions in 119 countries across the world.
The network is managed in line with the
principles of mutual trust, collaboration, and
transparency by a dynamic team specialized in
CRM focused on creating fast and alternative
solutions for their customers. This network
continues to expand by the day with the
establishment of new relationships. Following
the agreements signed with the EBRD and
the International Finance Corporation (IFC)
to develop foreign trade, VakıfBank acts as
an intermediary for export letters of credit
and guarantees from the banks supported
in the program under the umbrella of these
institutions. Thanks to its extensive network
of correspondent banks as well as its lines of
credit, VakıfBank continues to support funding
for foreign trade transactions and remains one
of the most preferred banks in this segment.
VAKIFBANK’S INTERNATIONAL
ORGANIZATION
VakıfBank International AG
VakıfBank International AG, headquartered in
Vienna, was established in 1999 in line with
VakıfBank’s plans to expand overseas and
conduct international banking operations.
New York Branch
The New York Branch was established in 1995
to better exploit opportunities in international
financial markets and to provide more
comprehensive solutions to customers in foreign
trade.
WE ISSUED TURKEY’S
FIRST EVER BASEL
III-COMPLIANT
SUBORDINATED NOTES.
