The World Bank Implementation Status & Results Report Long Term Export Finance (P156252) Long Term Export Finance (P156252) EUROPE AND CENTRAL ASIA | Turkey | Finance, Competitiveness and Innovation Global Practice | IBRD/IDA | Investment Project Financing | FY 2017 | Seq No: 4 | ARCHIVED on 30-Apr-2019 | ISR36702 | Implementing Agencies: Turkiye Ihracat Kredi Bankasi (Turk Eximbank), Turkiye Ihracat Kredi Bankasi (Turk Eximbank) Key Dates Key Project Dates Bank Approval Date: 18-Jul-2016 Effectiveness Date: 21-Feb-2017 Planned Mid Term Review Date: 01-Apr-2019 Actual Mid-Term Review Date: 01-Apr-2019 Original Closing Date: -- Revised Closing Date: 31-Jan-2021 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objective (PDO) is to improve access to longer term finance for export oriented small, medium and large enterprises. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name The establishment and operation of a credit facility by Eximbank for the provision of subsidiary-finance to PFIs for the provision of sub-finance to SMEs and LEs to finance the Sub-projects.:(Cost $239.25 M) The establishment and operation of a credit facility by Eximbank for the provision of sub-finance to SMEs to finance the Sub-projects.:(Cost $60.00 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Moderate Moderate Implementation Status and Key Decisions Based on the latest supervision visit held in April 2019, the team's overall assessment is that the Project is on track, implementation performance is satisfactory and project is well ahead of disbursement plan. Exim Bank has by now selected 9 Participating Financial Institutions (PFIs) - 2 banks and 7 leasing companies. Project aims to create competition among the PFIs with a first comes first served model which requires a large number of PFIs to be signed up and allocated limits. Exim Bank has withdrawn the entire Loan amount (US$ 300 million) from IBRD between June 2017 and December 2018. Out of this amount, almost US$290 million was disbursed to final beneficiaries (export-oriented enterprises) as of early April 2019. The full amount of US$239 million earmarked to wholesale lending component has by now been allocated by PFIs to eligible sub- projects. Under a smaller direct lending component almost US$50 million has been allocated by Eximbank to eligible sub-projects, with only US$10 million left under this component 4/30/2019 Page 1 of 6 The World Bank Implementation Status & Results Report Long Term Export Finance (P156252) Project development indicators demonstrate the steady progress towards achievement of the Project Development Objective (PDO). Latest project development indicators reported as of December 31, 2018 show that the most of the indicators are already exceeding their end target values. As of December 31, 2018, project has financed 183 SMEs and 44 LEs since its launch. The weighted average maturity of SME sub-loans financed under the project has exceeded the average maturity of PFIs' own loan portfolio by 233 percent and the weighted average maturity of LE sub-loans financed under the project has exceeded the average maturity of PFIs' own loan portfolio by 22 percent. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Low Low Low Macroeconomic Moderate Substantial Substantial Sector Strategies and Policies Moderate Moderate Moderate Technical Design of Project or Program Low Low Low Institutional Capacity for Implementation and Sustainability Low Low Low Fiduciary Low Low Low Environment and Social Low Low Low Stakeholders Low Low Low Other -- Low Low Overall Moderate Moderate Moderate Results PDO Indicators by Objectives / Outcomes Improve access to longer term finance for export oriented small and medium enterprises. IN00692262 ►Ratio of the average maturity of SME sub-financing under the project, over the average maturity of the PFIs? SME portfolio not financed under the project. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1.00 -- 3.33 >1 Date 25-Jul-2016 31-Dec-2017 31-Dec-2018 25-Jul-2020 IN00692264 ►Number of SME beneficiaries financed by PFIs under the project (cumulative). (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 74.00 183.00 260.00 4/30/2019 Page 2 of 6 The World Bank Implementation Status & Results Report Long Term Export Finance (P156252) Date 25-Jul-2016 31-Dec-2017 31-Dec-2018 25-Jul-2020 IN00692266 ►Volume of Bank support (cumulative, US$ million). (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 203.00 285.37 300.00 Date 25-Jul-2016 15-Jun-2018 31-Dec-2018 25-Jul-2020 Improve access to longer term finance for export oriented large enterprises. IN00692263 ►Ratio of the average maturity of LE sub-financing under the project, over the average maturity of the PFIs? LE portfolio not financed under the project. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1.00 -- 1.22 >1 Date 25-Jul-2016 31-Dec-2017 31-Dec-2018 25-Jul-2020 IN00692265 ►Number of LE beneficiaries financed by PFIs under the project (cumulative). (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 13.00 44.00 30.00 Date 25-Jul-2016 31-Dec-2017 31-Dec-2018 25-Jul-2020 Intermediate Results Indicators by Components The establishment and operation of a credit facility by Eximbank for the provision of subsidiary-finance to PFIs for the provision of sub-finance to SMEs and LEs to finance the Sub-projects. IN00692267 ►Number of active PFIs under the project (cumulative). (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 11.00 9.00 6.00 Date 25-Jul-2016 15-Jun-2018 31-Dec-2018 25-Jul-2020 IN00692269 ►Based on Core Indicator: Volume of Bank Support: Lines of Credit - SME (cumulative, US$ million). (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 75.00 201.30 180.00 Date 25-Jul-2016 15-Jun-2018 31-Dec-2018 25-Jul-2020 IN00692271 ►Export multiplier: Ratio of the export growth of SMEs and LEs under the project relative to the export growth of their equivalent sector. (Text, Custom) 4/30/2019 Page 3 of 6 The World Bank Implementation Status & Results Report Long Term Export Finance (P156252) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 2.30 >1 Date 25-Jul-2016 15-Jun-2018 31-Dec-2018 25-Jul-2020 IN00692273 ►Based on Core Indicator: Outstanding SME finance portfolio (US$ million). (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value n/a -- 41,792 n/a Date 25-Jul-2016 15-Jun-2018 15-Jun-2018 25-Jul-2020 IN00692275 ►Based on Core Indicator: Number of active SME finance accounts (not cumulative). (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value n/a -- 1,099,693 n/a Date 25-Jul-2016 15-Jun-2018 15-Jun-2018 25-Jul-2020 IN00692277 ►Outstanding export finance portfolio (US$ million). (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value n/a -- 23,483 n/a Date 25-Jul-2016 15-Jun-2018 15-Jun-2018 25-Jul-2020 IN00692278 ►Number of active export finance accounts (not cumulative). (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value n/a -- 31,779 n/a Date 25-Jul-2016 15-Jun-2018 15-Jun-2018 25-Jul-2020 IN00692279 ►Compliance with prudential regulation. (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value Yes Yes Yes Yes Date 30-Sep-2015 15-Jun-2018 31-Dec-2018 25-Jul-2020 IN00692280 ►Gender: Percent of SME and LE beneficiaries financed under the project with at least 15 percent female participation in their workforce. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 30.00 n/a Date 25-Jul-2016 15-Jun-2018 31-Dec-2018 25-Jul-2020 4/30/2019 Page 4 of 6 The World Bank Implementation Status & Results Report Long Term Export Finance (P156252) The establishment and operation of a credit facility by Eximbank for the provision of sub-finance to SMEs to finance the Sub-projects. IN00692268 ►Percent of SMEs receiving sub-finance by Eximbank that are new exporters. (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 10.00 Date 25-Jul-2016 15-Jun-2018 15-Jun-2018 25-Jul-2020 IN00692270 ►Citizen Engagement: SMEs and LEs that feel project sub-finance reflected their needs. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- n/a n/a Date 25-Jul-2016 15-Jun-2018 31-Dec-2018 25-Jul-2020 IN00692272 ►Based on Core Indicator: Financial Sustainability: Return on Equity (%) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 10.40 -- 13.10 n/a Date 30-Sep-2015 15-Jun-2018 31-Dec-2018 25-Jul-2020 IN00692274 ►Based on Core Indicator: Financial Sustainability: Return on Assets (%)(Percentage) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1.20 -- 0.80 n/a Date 30-Sep-2015 15-Jun-2018 31-Dec-2018 25-Jul-2020 IN00692276 ►Based on Core Indicator: Portfolio Quality: Portfolio at risk (%). (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.30 -- 0.30 n/a Date 30-Sep-2015 15-Jun-2018 31-Dec-2018 25-Jul-2020 Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P156252 IBRD-86300 Effective USD 300.00 300.00 0.00 300.00 0.00 100% 4/30/2019 Page 5 of 6 The World Bank Implementation Status & Results Report Long Term Export Finance (P156252) Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P156252 IBRD-86300 Effective 26-Jul-2016 24-Oct-2016 21-Feb-2017 31-Jan-2021 31-Jan-2021 Cumulative Disbursements Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 4/30/2019 Page 6 of 6