VKF_FRAE_2017

73 VakıfBank Annual Report 2017 A credit facility agreement of EUR 80 million was signed on November 20, 2017 between French Development Agency (AFD) and VakıfBank aiming to support rural development and agricultural sectors in Turkey to finance micro-, small- and medium-size enterprises, cooperatives, producer unions as well as farmers engaged in these sectors. »» COLLABORATIONS WITH THE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT USD 110 million obtained from the European Bank for Reconstruction and Development (EBRD), under the scope of securitization loan based on future flow transaction amounting USD 890 million equivalent, in Euro- and US Dollars-denominated, signed by VakıfBank in 2016, is being used to finance SMEs’ energy efficiency projects, in the framework of the TurSEFF II and TurSEFF III (Turkey Sustainable Energy Finance Program) loans. VakıfBank has become the first Turkish bank to allocate EBRD’s TurSEFF III funds. 50% of EUR 50 million facility obtained from the European Bank for Reconstruction and Development (EBRD) in 2016 as part of VakıfBank’s Residential Mortgage Covered Bond Programme was extended to SMEs in the agriculture sector while the remaining 50% keeps being used in supporting women entrepreneurs (as part of the Women in Business program) with a focus on priority development regions. »» COLLABORATIONS WITH THE WORLD BANK In 2010, VakıfBank and the World Bank signed a USD 200 million SME Financing Loan under the guarantee of the Undersecretariat of Treasury. Loan allocations under this 30-year facility with a 5.5-year grace period were completed in 2015. In 2013, the World Bank extended USD 201 million to three public banks (VakıfBank, Ziraat Bankası, Halk Bankası) under the scope of the SME Energy Efficiency Project, with the guarantee of the Undersecretariat of Treasury. Loans amounting USD 36.3 million were allocated under this fund amounting USD 67 million facility with a maturity of 30 year and a 5.5-year grace period by this time. Loan allocations have accelerated especially in 2017, and VakıfBank became the first bank to allocate the Performance Guaranteed Transaction Agreements (ESCO), an important component of the this project. »» COLLABORATIONS WITH THE FRENCH DEVELOPMENT AGENCY (AFD) A credit facility agreement was signed on November 20, 2017 between French Development Agency (AFD) and VakıfBank aiming to support rural development and agricultural sectors in Turkey to finance micro-, small- and medium-size enterprises, cooperatives, producer unions as well as farmers engaged in these sectors. The facility allocated to VakıfBank that has a three-year grace period for principal repayment, and a final maturity of 12 years. The technical assistance component of this facility through strengthening the management of VakıfBank’s environmental risk and social risk increase its capacity in agricultural and rural financing. »» ACTIVITIES IN 2017 In order to support the real economy with long-term and cost-effective financing, VakıfBank continues its loan collaborations with The European Investment Bank (EIB), the World Bank, the European Bank for Reconstruction and Development (EBRD), the German Development Bank (KfW) and the French Development Agency (AFD). VakıfBank continues to collaborate with the European Investment Bank (EIB), the World Bank, EntwicklungsBANK (KFW) and the European Bank for Reconstruction and Development (EBRD), French Development Agency (AFD) to provide long- term, cost-effective funding to the real economy.