VKF_FRAE_2018_uyg11

VakıfBank Annual Report 2018 71 the conversion, this EUR 100 million was allocated in a short period of time. VakıfBank signed an additional SME-B Loan Agreement on May 6, 2016 for the second EUR 100 million tranche of the EUR 200 million facility obtained in 2013. The first tranche of the loan amounting EUR 50 million was transferred to the Bank’s accounts on October 14, 2016 and fully disbursed by November 2016. The last tranche of the loan amounting EUR 50 million arrived in the Bank’s accounts on December 22, 2016. Allocations from this 12-year facility with a four-year grace period ended in March 2018. As a result of its ongoing success in projects targeting SMEs and mid-cap businesses, EIB allocated a new fund of EUR 100 million to the Bank under the name VakıfBank Loan III for SMEs and Midcaps. The agreement for the loan secured with guarantee from the TR Ministry of Treasury and Finance was signed on December 16, 2016. This 8-year facility with a 3-year grace period was transferred to the Bank’s accounts on March 9, 2017. Loan allocations under the facility were completed by March 2018. Collaborations with World Bank In 2013, World Bank extended USD 201 million to three public banks – VakıfBank, Ziraat Bankası, and Halk Bankası – as part of the SME Energy Efficiency Project, under the guarantee of the TR Ministry of Treasury and Finance. As of 2018 year-end, the Bank received USD 62 million of this facility, which amounts to a total of USD 67 million, and has a maturity of 30 years and a 5.5-year grace period. Loan allocations under this facility have accelerated over time, especially since 2017; VakıfBank has allocated USD 59 million of this facility in 2018. In 2017, VakıfBank became the first bank to allocate the Performance Guaranteed Transaction Agreements (ESCO), an important component of this project. Under the project, a total of USD 12.7 million has been allocated to SMEs via leasing companies since 2017. Collaborations with French Development Agency (AFD) A credit facility agreement amounting 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. The agreement targeted financing to micro-, small- and medium-sized enterprises, cooperatives, producer unions as well as farmers engaged in these sectors. The facility allocated to VakıfBank has a three-year grace period for principal repayment, and a final maturity of 12 years. The technical assistance component of this facility supports VakıfBank’s environmental risk and social risk management while increasing its capacity in agricultural and rural financing. The first tranche of the facility, EUR 40 million, was transferred to the Bank’s account on December 19, 2017; loan allocations were completed in just three months. The second tranche of the loan, amounting to EUR 40 million, was transferred to the Bank’s account on June 11, 2018; loan allocations are ongoing. Three Award Nominations for Covered Bond and Eurobond Deals For Turkey’s first and only foreign currency Covered Bond Programme completed in 2016, amounting EUR 500 million, the Bank has awarded with five awards from prestigious and reputable institutions of capital markets around the world. At the “Bonds & Loans 2019” awards, one of the most prestigious award of the financial sector, VakıfBank was nominated for “Bond- Issuance Deal of the Year” and “Best Financial Institution – Financing Deal of the Year” awards for its five-year USD 650 million bond issue on January 30, 2018, realized under the Bank’s GMTN Programme. Furthermore, as part of the Covered Bond Programme, VakıfBank was nominated for the “Best Structured Financing Deal of the Year” award for its covered bond issue based on treasury transactions dated October 9, 2017, where Credit Suisse was the investor. In 2018, VakıfBank secured syndicated loans amounting USD 2.1 billion, at a 110% roll over ratio.