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INTRODUCTION
50
REVIEW OF OPERATIONS
IN 2014
The
€
200 million facility obtained under the Small and
Medium-sized Enterprises Project, signed with the EIB in
2012, was used up within just one year. Subsequently,
the Bank began working on developing a new loan facility
with similar features from the EIB. On November 7, 2014,
the Bank signed the
€
100 million (US$ 123.9 million)
Small and Medium-sized Enterprises Project II with the EIB.
The entire facility was released to the Bank on December
29, 2014.
DIVERSIFIED FUNDING ALTERNATIVES
In order to evaluate the opportunities offered by different
funding alternatives in overseas capital markets, VakıfBank
applied for authorizations from official bodies to issue
covered bonds, which have long been used in developed
markets, particularly in Europe, as a funding source and
is recognized in the Communiqué on Mortgage-Backed
Securities (MBS) published by the Capital Markets Board
(CMB) in 2007. As one of the leading banks for mortgage
loans, VakıfBank aims to tap a different investor base with
this new instrument and bolster its name recognition in
international capital markets.
ONGOING LOAN RELATIONSHIP WITH KFW
Following long negotiations and due diligence meetings,
VakıfBank has begun working with the KfW for the
first time. The KfW allocated a
€
100 million facility
to VakıfBank to be used in financing micro, small and
medium-size companies operating in Turkey. The loan
facility, which is extended under the guarantee of the
Turkish Treasury, has a three-year grace period and a
maturity of 10 years. This facility was disbursed in its
entirety in 2014 to fund SMEs in Turkey. The Bank is
continuing its efforts to obtain new funding for SMEs from
the KfW.
FOREIGN TRADE AND CORRESPONDENT BANKS
VakıfBank’s robust correspondent bank network,
comprised of 1,614 banks and financial institutions in
117 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.
During 2014, VakıfBank regularly provided information about the Bank and its
operations to investors and securities firms.
1,614
CORRESPONDENT
BANKS
VakıfBank’s robust
correspondent bank
network is comprised
of 1,614 banks and
financial institutions
in 117 countries across
the world.