International Banking
İşbank enjoys a strong, respected and leading position in the areas of foreign trade and foreign currency transfers.
İşbank responds to the needs and expectations of its customers in the area of foreign trade finance with a lineup of high-quality products and services.
İşbank’s customers active in the foreign trade sector conduct their transactions in a secure and efficient manner via its correspondent bank network of more than 1,500 banks and financial institutions in 127 countries.
İşbank’s perfectionist approach and quality is recognized through awards at all time.
In 2011 İşbank once again continued to deliver high-quality service in the business of international banking. The Bank’s reputation for the error-free handling of transfers abroad and for Straight-Through Processing (STP) has been recognized and commended repeatedly by many international banks over the years. Having received the first such award in 1997, İşbank again became the object of such recognition in 2011 when it received STP quality citations from Citibank NA, Commerzbank AG, Deutsche Bank AG and The Bank of New York Mellon.
İşbank was a focal point of attention at SIBOS in Toronto.
The SWIFT International Banking Operations Seminar (SIBOS) is conducted in a different city every year by the Society for Worldwide Interbank Financial Telecommunication (SWIFT). İşbank attended and operated a stand at this year’s event when it was held in the Canadian city of Toronto between 19-23 September in 2011. Following up its three previous international communication and promotion successes on its own behalf and those of in Turkey; after Vienna, Hong Kong and Amsterdam, this was the fourth time İşbank has had a presence at SIBOS.
İşbank hosted international meetings at which the effects of the global crisis on foreign trade finance were discussed.
The Trade Finance Forum conducted annually by the European Bank for Reconstruction and Development (EBRD) took place between 5-7 October 2011 at the İşbank Auditorium with İşbank playing host for the third time.
The forum serves as a platform which brings key market players together and on which the current situation in trade finance can be discussed. The main topics at this year’s gathering were the impacts which the global financial crisis was having on the economies, banking sectors and trade of countries in which EBRD is active. Particular attention was given to what sorts of approaches are being taken in these countries to cope with the crisis.
Special sessions dealing specifically with Turkey, the Russian Federation, Caucasus countries and Belarus were among the highlights of this year’s forum. Forum participants included representatives from banks and financial institutions, economics and financial media organizations and real economy firms active in Turkey as well as in other countries.
İşbank is an example of sustainability in resource procurement.
İşbank acts as a guide for Turkish banks’ syndication deals.
İşbank signed two syndicated loan agreements in 2011. The first, which was signed on May 16th, involved 45 banks from 19 countries and was for USD 290 million and EUR 626 million. The second, which was signed on September 14th, involved 37 banks from 15 countries and was for USD 359 million and EUR 603 million. These syndications amounted to about USD 1.2 billion each.
About USD 2.4 billion worth of international financing was secured through syndicated loans in 2011.
In the “Syndicated Loans and Leveraged Finance” awards handed out by EuroWeek magazine, İşbank received its third award in succession as “Best Turkish Loan” for the syndicated loan that it obtained in September 2011.
İşbank issued its first eurobonds.
On 1 February 2011, İşbank carried out its first eurobond issue. With a total nominal value of USD 500 million, the 5-year bonds had 5.30% yields and bore 5.10% coupons. The bonds, demand for which was twice the amount issued, were snapped up by a broad range of investors based in many different countries and regions. The bonds are quoted on the London Stock Exchange and bear credit ratings of Ba1 (Moody’s) and BBB- (Fitch).
Through its diversified payment rights securitization program, İşbank generated funds amounting to USD 75 million and EUR 160 million.
İşbank originally set up a securitization program based on its diversified payment rights in 2004. On 31 October 2011, İşbank finalized two Diversified Payment Rights securitization deals under this program, one amounting to USD 75 million and the other to EUR 160 million. The tranches of the securitization deal amounting to USD 75 million and EUR 100 million have a final maturity of 5 years and the tranche amounting to EUR 60 million has a final maturity of 7 years.
The long term and special purpose loans that İşbank obtains from international development and investment banks represent an important resource for the Turkish economy.
İşbank and Korea Eximbank have entered into a credit agreement to finance purchases of goods, services and ship imports from South Korea.
On 9 December 2011, İşbank and Korea Eximbank signed a credit agreement for USD 50 million, which is to be used as short and long term financing for goods, services and ship imports which are of South Korean origin or which are sold by South Korean firms to importers in Turkey. This agreement takes the long-term relationship that İşbank and Korea Eximbank have been enjoying for many years yet another step forward.
A second agreement covering long-term funding for the shipping industry
On 4 March 2011, İşbank and Japan Bank for International Cooperation (JBIC) signed their second credit agreement. The new facility provides for JPY 22 billion to be used in funding shipping on 12-year terms.
The first agreement, which was signed on 3 December 2009, was for JPY 10 billion and was on the same terms. It marked the first time that JBIC entered into such a cooperation with another financial institution outside Japan.
İşbank and EBRD signed a loan agreement to provide financing for energy efficiency projects.
On 27 October 2011 İşbank and EBRD signed a loan agreement for USD 40 million under EBRD’s “Turkey Sustainable Energy Financing Facility” (TurSEFF). Of the total amount, USD 33.3 million funding is provided with maturity of 5 years from EBRD’s own resources while the remaining USD 6.7 million funding with maturity of 15 years is provided by the World Bank’s Clean Technology Fund (CTF).
İşbank and EIB signed a loan agreement to provide financing to SMEs.
On 9 December 2011, İşbank and the European Investment Bank (EIB) signed a loan agreement with a maximum 10 year maturity in the amount of EUR 150 million. The resources being provided under this facility, which represents the second time that İşbank and EIB are working together, are to be used to funding small and medium-sized enterprises (SME) that fulfill certain criteria.
İşbank and KfW signed a supplementary loan agreement to provide financing to small enterprises.
On 19 December 2008, İşbank and the German Development Bank (KfW) signed a framework agreement covered by the European Union’s second Small Enterprises Loan Programme (SELP II). This agreement provided for a total of EUR 23.6 million in financing. On 29 December 2011, another agreement was signed with KfW under which an additional EUR 31.4 million worth of financing is to be made available on 4 years terms. This credit is to be used for funding small enterprises.
In 2011 İşbank also secured a number of long-term, special-purpose loan agreements in line with its relationships with international development and investment banks. These loans represent important resources for the Turkish economy as well as for İşbank.
İşbank will continue to tap into and take advantage of the growth potential that exists in its nearby geography.
Developments in the international service network
İşbank’s goals in international banking are to become a regional and then a global bank, to keep track of regional and international developments and to develop sustainable relationships and seek out opportunities to cooperate with banks that are active in markets that are important for the Turkish economy.
İşbank’s aims are to support its growth objectives in the Turkish financial markets that make up its core business activity and to keep its position as a domestic market leader through high-quality service which its cross-border organization supplies to its customers while also taking advantage of such opportunities as international markets may provide.
- The Turkish bank with the most extensive branch network in TRNC
In 2011 İşbank opened its İskele Branch in the Turkish Republic of Northern Cyprus and maintained its position as the bank with the most extensive branch network in the country with 14 branches. - İşbank in Arbil
İşbank Arbil Branch in Iraq became operational in 2011. - International banking activities gaining momentum from London to Cairo
London and Bahrain branches and China and Egypt representative offices support İşbank’s international banking activities with increasing momentum.
Growth potential in the nearby geography
In the period ahead, İşbank will focus on supporting its regional expansion as the Bank seeks to tap the growth potential in its nearby geography. Efforts to develop its cross-border banking activities will be continuing with projects undertaken in Iraq, Georgia, Kosovo, Pakistan, Azerbaijan and Egypt during 2012.
İşbank’s cross-border banking subsidiaries in 2011
İşbank GmbH
İşbank GmbH, an İşbank banking subsidiary based in Germany, provides retail, commercial and corporate banking products and services through branches located in Germany, France, the Netherlands, Switzerland and Bulgaria where there are substantial Turkish population. İşbank GmbH opened a new branch in the Bulgarian city of Sofia, bringing the total number in its network to 16.
İşbank Russia: A historical first for İşbank
For the first time in its corporate history, İşbank acquired another bank in 2011 by purchasing the 100% stake in Moscow-based CJSC Bank Sofia.
Following the completion of acquisition formalities, CJSC Bank Sofia’s name was changed to CJSC İşbank (İşbank Russia).
With 382 employees and 15 branches, İşbank Russia offers a comprehensive lineup of banking products and services including retail deposit accounts.