The World Bank Implementation Status & Results Report Innovative Access to Finance (P147183) Innovative Access to Finance (P147183) EUROPE AND CENTRAL ASIA | Turkey | Finance, Competitiveness and Innovation Global Practice | IBRD/IDA | Investment Project Financing | FY 2015 | Seq No: 8 | ARCHIVED on 13-Nov-2018 | ISR34429 | Implementing Agencies: Türkiye Sınai Kalkınma Bankası A.Ş. (TSKB), Türkiye Sınai Kalkınma Bankası A.Ş. (TSKB) Key Dates Key Project Dates Bank Approval Date: 22-Jul-2014 Effectiveness Date: 04-Dec-2014 Planned Mid Term Review Date: 15-Mar-2017 Actual Mid-Term Review Date: 15-Dec-2016 Original Closing Date: 31-Dec-2018 Revised Closing Date: 31-Dec-2018 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objective (PDO) is to improve access to longer term Islamic finance and to factoring for small and medium enterprises and export oriented enterprises. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name A credit line to TSKB to on-lend/finance intermediation through participation bank and factoring company PFIs to SMEs and EOEs.:(Cost $250.00 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Low Low Implementation Status and Key Decisions TSKB disbursement continued to perform strongly in 2018. TSKB has withdrawn the remaining US $ 17.8 million in 2018 and successfully completed the disbursements to Participating Financial Institutions (PFIs). Both TSKB commitments and disbursements and World Bank’s disbursements to TSKB have reached 100 percent of the Loan amount (US $ 250 million). Latecomer Ziraat Katılım have completed its disbursements within 2018, bringing the overall disbursements to final beneficiary Small and Medium Size Enterprises (SMEs) and Export Oriented Enterprises (EOEs) to 100 percent. According to latest available data project continues to perform well in terms of achieving project development objectives. According to the indicators of the maturity performance of Islamic sub-financing and export factoring of factoring sub-financing, the project continues to exceed the targets. Weighted average maturity of Islamic sub-financing under the project is 3.3 times higher than the average maturity under PFIs own portfolio. Share 11/13/2018 Page 1 of 6 The World Bank Implementation Status & Results Report Innovative Access to Finance (P147183) of export factoring is 7.1 times higher compared to the share of export factoring in PFI’s own portfolio. In total 330 SMEs and EOEs have been financed under the project. Priority region disbursement ratio has reached to 29 percent which is almost double of the target amount 15 percent. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- Moderate Moderate Macroeconomic -- Moderate Substantial Sector Strategies and Policies -- Moderate Moderate Technical Design of Project or Program -- Low Low Institutional Capacity for Implementation and Sustainability -- Low Low Fiduciary -- Low Low Environment and Social -- Low Low Stakeholders -- Low Low Other -- Low Low Overall -- Low Low Results PDO Indicators by Objectives / Outcomes Improve access to longer term Islamic finance and to factoring for small and medium enterprises IN00570026 ►Ratio of the average maturity of Islamic sub-financing under the project, over the average maturity of the Islamic finance PFIs’ portfolio not financed under the project. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1.00 3.80 3.30 >1 Date 01-Aug-2014 15-Feb-2018 30-Jun-2018 31-Jul-2018 IN00570028 ►Number of SME beneficiaries financed by PFIs under the project (cumulative). (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 120.00 121.00 300.00 Date 01-Aug-2014 15-Feb-2018 30-Jun-2018 31-Jul-2018 11/13/2018 Page 2 of 6 The World Bank Implementation Status & Results Report Innovative Access to Finance (P147183) Improve access to longer term Islamic finance and to factoring for export oriented enterprises IN00570027 ►Ratio of export factoring sub-financing in the fact. portfolio financed under the project, over the fact. comp. PFIs’ export factoring finance in the factoring portfolio not financed under the project (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1.00 22.50 7.10 >1 Date 01-Aug-2014 15-Feb-2018 30-Jun-2018 31-Jul-2018 IN00570029 ►Number of EOE beneficiaries financed by PFIs under the project (cumulative). (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 204.00 209.00 30.00 Date 01-Aug-2014 15-Feb-2018 30-Jun-2018 31-Jul-2018 Intermediate Results Indicators by Components A credit line to TSKB to on-lend/finance intermediation through participation bank and factoring company PFIs to SMEs and EOEs. IN00570030 ►Number of PFIs under the project (cumulative). (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 7.00 7.00 6.00 Date 01-Aug-2014 15-Feb-2018 30-Jun-2018 31-Jul-2018 IN00570036 ►Volume of Bank support (cumulative, US$ million). (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 247.00 249.50 250.00 Date 01-Aug-2014 15-Feb-2018 30-Jun-2018 31-Jul-2018 IN00570038 ►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 71.40 71.40 150.00 Date 01-Aug-2014 15-Feb-2018 30-Jun-2018 31-Jul-2018 IN00570032 ►Outstanding export finance portfolio (US$ million). (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value n/a 540.00 710.00 n/a 11/13/2018 Page 3 of 6 The World Bank Implementation Status & Results Report Innovative Access to Finance (P147183) Date 01-Aug-2014 15-Feb-2018 30-Jun-2018 31-Jul-2018 IN00570033 ►Based on Core Indicator: Outstanding SME finance portfolio (US$ million). (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value n/a 6,981 3,072 n/a Date 01-Aug-2014 15-Feb-2018 30-Jun-2018 31-Jul-2018 IN00570034 ►Number of active export finance accounts (not cumulative). (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value n/a 1,683.00 639.00 n/a Date 01-Aug-2014 15-Feb-2018 30-Jun-2018 31-Jul-2018 IN00570041 ►Based on Core Indicator: Portfolio Quality: Portfolio at risk (%). (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.40 0.30 0.20 n/a Date 31-Dec-2013 15-Feb-2018 30-Jun-2018 31-Jul-2018 IN00570039 ►Based on Core Indicator: Number of active SME finance accounts (not cumulative). (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value n/a 94,158 47,876 n/a Date 01-Aug-2014 15-Feb-2018 30-Jun-2018 31-Jul-2018 IN00570037 ►Based on Core Indicator: Financial Sustainability: Return on Assets (%) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 2.80 2.30 2.30 n/a Date 31-Dec-2013 15-Feb-2018 30-Jun-2018 31-Jul-2018 IN00570040 ►Based on Core Indicator: Financial Sustainability: Return on Equity (%) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 17.90 19.10 18.40 n/a Date 31-Dec-2013 15-Feb-2018 30-Jun-2018 31-Jul-2018 IN00570035 ►Compliance with prudential regulation. (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target 11/13/2018 Page 4 of 6 The World Bank Implementation Status & Results Report Innovative Access to Finance (P147183) Value Yes Yes Yes Yes Date 01-Aug-2014 15-Feb-2018 30-Jun-2018 31-Jul-2018 IN00570031 ►Percent of SME sub-finance financing SME Sub-projects in priority regions. (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 29.00 29.00 15.00 Date 01-Aug-2014 15-Feb-2018 30-Jun-2018 31-Jul-2018 Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P147183 IBRD-84090 Effective USD 250.00 250.00 0.00 238.19 0.00 100% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P147183 IBRD-84090 Effective 22-Jul-2014 22-Aug-2014 04-Dec-2014 31-Dec-2018 31-Dec-2018 Cumulative Disbursements 11/13/2018 Page 5 of 6 The World Bank Implementation Status & Results Report Innovative Access to Finance (P147183) Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 11/13/2018 Page 6 of 6