The World Bank Implementation Status & Results Report Inclusive Access to Finance (P163225) Inclusive Access to Finance (P163225) EUROPE AND CENTRAL ASIA | Turkey | Finance, Competitiveness and Innovation Global Practice | IBRD/IDA | Investment Project Financing | FY 2018 | Seq No: 2 | ARCHIVED on 05-Nov-2019 | ISR39039 | Implementing Agencies: TÜRKİYE SINAİ KALKINMA BANKASI A.Ş. (TSKB), TÜRKİYE SINAİ KALKINMA BANKASI A.Ş. (TSKB) Key Dates Key Project Dates Bank Approval Date: 22-May-2018 Effectiveness Date: 21-Dec-2018 Planned Mid Term Review Date: -- Actual Mid-Term Review Date: Original Closing Date: 30-Jun-2023 Revised Closing Date: 30-Jun-2023 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The PDO is to improve access to longer-term finance for (i) women-inclusive enterprises and (ii) enterprises in less developed sub-regions affected by SuTP influx. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Component 1:(Cost $200.00 M) Component 2:(Cost $200.00 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO ►Moderately Satisfactory ►Moderately Satisfactory Overall Implementation Progress (IP) ►Moderately Satisfactory ►Moderately Satisfactory Overall Risk Rating ►Low ►Low Implementation Status and Key Decisions Inclusive Access to Finance Project became effective on December 21st, 2018 after TSKB signed Subsidiary Financing Agreements (SFAs) with two Participating Financial Institutions (PFIs). Project became effective in a fragile environment for the banking sector following the exchange rate volatility in August 2018 which triggered rapid slowdown in the credit growth and economy entering recession. In spite of the challenging environment TSKB succeeded in signing SFAs with three more PFIs by August 2019. Currently project’s funds under the wholesale component are intermediated by three banks and two leasing companies. TSKB is in contact with two more potential 11/5/2019 Page 1 of 7 The World Bank Implementation Status & Results Report Inclusive Access to Finance (P163225) PFIs to be included in the project before the end of 2019. TSKB is continuing to provide trainings and implementation support to the new PFIs for them to fully internalize project requirements and ensure information and data flow on project results. In total US $ 75 million have been disbursed from the World Bank under the project which is corresponding to 18 percent of total project funds (US $ 400 million). TSKB is planning to withdraw another US $ 50 million before the end of the 2019. Total disbursement to final beneficiary Small and Medium Sized Enterprises (SMEs) and Large Enterprises (LEs) has reached US $ 19.7 million as of August 2019. On the other hand, in total US $ 24.6 million of loans are under review for approval by TSKB (19.4 million under direct lending component and 5.2 million under wholesale component). Once pipeline loan review is completed disbursement to final beneficiary SMEs and LEs is expected to increase to US $ 44.3 million by the end of 2019. While it is still early in the implementation, project has already started to generate its developmental impact. In total 24 enterprise (20 SME and 4 LEs) have been funded. Out of the total 24 enterprises, 13 are women inclusive enterprises and 11 are enterprises located in the less-developed regions. 24 percent of the loans disbursed to final beneficiaries are investment loans while remaining 76 percent are working capital loans. Number of total full-time employees employed by the firms funded under the project is 2,672. Weighted average maturity of total loans under the project is 45 months. Weighted average maturity of SME loans is longer (55 months) compared to LE loans (40 months). 6 enterprises have been assessed by TSKB through Project Gender Toolkit and 4 of them completed implementation of a gender action plan. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance ►Moderate ►Moderate ►Moderate Macroeconomic ►Substantial ►Substantial ►Substantial Sector Strategies and Policies ►Low ►Low ►Low 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 ►Low Overall ►Low ►Low ►Low Results PDO Indicators by Objectives / Outcomes Improve access to longer-term finance for women-inclusive and less developed sub-regions enterprises IN00758489 ►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 11/5/2019 Page 2 of 7 The World Bank Implementation Status & Results Report Inclusive Access to Finance (P163225) Value 0.00 0.00 0.75 >1 Date 31-May-2018 09-Jan-2019 25-Sep-2019 31-May-2022 IN00758490 ►Ratio of the average maturity of LE sub-financing under the project, over the average maturity of the Borrower's LE portfolio not financed under the project. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.68 >1 Date 31-May-2018 09-Jan-2019 25-Sep-2019 31-May-2022 IN00758511 ►Volume of Bank support (cumulative, US$ million) (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 75.00 400.00 Date 31-May-2018 09-Jan-2019 25-Sep-2019 31-May-2022 Intermediate Results Indicators by Components TSKB Direct Lending; lending to eligible beneficiary SMEs and LEs IN00758513 ►Percentage point difference between female employment growth in beneficiary enterprises and female employment growth in the respective sectors (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 n/a >0 Date 31-May-2018 10-Jan-2019 25-Sep-2019 31-May-2022 IN00758515 ►Percentage point difference between employment growth in beneficiary enterprises located in less developed regions and employment growth in the respective sectors (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 n/a >0 Date 31-May-2018 10-Jan-2019 25-Sep-2019 31-May-2022 IN00758517 ►Number of women-inclusive beneficiary enterprises financed under the project (cumulative) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 13.00 70.00 Date 31-May-2018 10-Jan-2019 25-Sep-2019 31-May-2022 IN00758519 11/5/2019 Page 3 of 7 The World Bank Implementation Status & Results Report Inclusive Access to Finance (P163225) ►Percent of sub-finance financing beneficiary enterprise sub-projects in the least developed sub-regions (Cumulative) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 29.00 7.50 Date 31-May-2018 10-Jan-2019 25-Sep-2019 31-May-2022 IN00758521 ►Number of SME beneficiaries financed under the project (cumulative) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 20.00 240.00 Date 31-May-2018 10-Jan-2019 25-Sep-2019 31-May-2022 IN00758523 ►Based on Core Indicator: Outstanding MSME finance portfolio (USD million) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value n/a n/a 1,213 n/a Date 31-May-2018 10-Jan-2019 25-Sep-2019 31-May-2022 IN00758525 ►Based on Core Indicator: Number of active MSME finance accounts (not cumulative) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value n/a n/a 144.00 n/a Date 31-May-2018 10-Jan-2019 25-Sep-2019 31-May-2022 Wholesale Component; on-lending funds through qualified PFIs IN00758512 ►Number of PFIs under the project (cumulative) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 2.00 5.00 5.00 Date 31-May-2018 10-Jan-2019 25-Sep-2019 31-May-2022 IN00758514 ►Number of enterprises assessed through Project Gender Toolkit (Cumulative) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 6.00 50.00 Date 31-May-2018 10-Jan-2019 25-Sep-2019 31-May-2022 IN00758516 ►Number of LE beneficiaries financed under the project (cumulative) (Number, Custom) 11/5/2019 Page 4 of 7 The World Bank Implementation Status & Results Report Inclusive Access to Finance (P163225) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 4.00 40.00 Date 31-May-2018 10-Jan-2019 25-Sep-2019 31-May-2022 IN00758518 ►Number of beneficiary enterprises that completed implementation of a gender action plan (Cumulative) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 4.00 15.00 Date 31-May-2018 10-Jan-2019 25-Sep-2019 31-May-2022 IN00758520 ►Based on Core Indicator: Portfolio Quality: Portfolio at risk (%) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target n/a Value n/a 0.00 2.20 Date 31-May-2018 10-Jan-2019 25-Sep-2019 31-May-2022 IN00758522 ►Based on Core Indicator: Financial Sustainability: Return on Assets (%) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value n/a n/a 1.90 n/a Date 31-May-2018 10-Jan-2019 25-Sep-2019 31-May-2022 IN00758524 ►Based on Core Indicator: Financial Sustainability: Return on Equity (%) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value n/a n/a 16.00 n/a Date 31-May-2018 10-Jan-2019 25-Sep-2019 31-May-2022 IN00758526 ►Compliance with prudential regulation (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value n/a compliant compliant n/a Date 31-May-2018 10-Jan-2019 25-Sep-2019 31-May-2022 IN00758527 ►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 n/a Date 31-May-2018 10-Jan-2019 25-Sep-2019 31-May-2022 IN00758528 11/5/2019 Page 5 of 7 The World Bank Implementation Status & Results Report Inclusive Access to Finance (P163225) ►Percentage point difference between the total employment growth in beneficiary enterprises under the Project and employment growth in the respective sectors (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 n/a >0 Date 31-May-2018 10-Jan-2019 25-Sep-2019 31-May-2022 Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P163225 IBRD-88600 Effective USD 400.00 400.00 0.00 76.00 324.00 19% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P163225 IBRD-88600 Effective 22-May-2018 07-Jun-2018 21-Dec-2018 30-Jun-2023 30-Jun-2023 Cumulative Disbursements 11/5/2019 Page 6 of 7 The World Bank Implementation Status & Results Report Inclusive Access to Finance (P163225) Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 11/5/2019 Page 7 of 7