📋 Tender Overview
Project ID: 56253
Status: Approved
Location: Türkiye
Business Sector: Financial Institutions
Notice Type: Private
Environmental Category: BE
Approval Date: 20 May 2025
Disclosure date: 21 May 2025
As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD
Project Description
A senior secured loan to Dunya Varlik Yonetim AS (the "Company") in amount of up to EUR 10 million in TRY equivalent, for 5 years including 2 year grace period, provided for acquisition of new non-performing loan ("NPL") portfolios in Turkiye.
Project Objectives
The loan will support Company's acquisition of new NPL portfolios in the country in challenging macroeconomic and political environment including hyperinflation, weakening of Turkish Lira as well as high cost of funding. With a weighted average life ("WAL") of 3.5 years, the loan will provide a stable source of long-term funding for Dunya Varlik Yonetim AS and will allow for stronger participation in local sale of the portfolios.
Transition Impact
ETI score:65
rong>Resilient: Increasing stock of NPLs and Stage 2 loans in Turkiye prevent banks from growth, affect their profitability and may impact solvency. A successful reduction of NPLs would help clean up the banks' balance sheets and free up capacity for new lending to the real economy, thus strengthening financial resilience. This loan will directly contribute to addressing this issue, as it will be used entirely for acquisition of new NPL portfolios from local banks.
Competitive: The project will improve liquidity of the NPL market and will support new NPL portfolio transactions in Turkiye through one of the leading players in the country. EBRD's loan will help the Company acquire a higher number and volume of portfolios, at a time when market activity is expected to accelerate by the end of 2025.
