BBVA’s Turkish unit has just renewed its $415 million syndicated loan based on environmental, sustainability and governance (ESG) criteria.

The financing is part of the bank’s foreign borrowing program and consists of two separate tranches of $259.5 million and €142.5 million for a total amount of $415 million. The loan has a 367 day maturity and was signed with 35 banks from 19 countries at an interest rate of SOFR + 3.50 percent and Euribor +3.25 percent, respectively.

The syndicated loan will primarily be used to finance foreign trade transactions, but includes ESG performance criteria to support the transition to a low-carbon economy, in line with Garanti BBVA’s commitment to phase out coal.  The loan encompasses a series of targets related to sustainable development, such as financing energy efficient projects, renewable energy, low carbon technologies, the circular economy and efficient use of water, as well as targets for inclusive growth like supporting women entrepreneurs, micro-enterprises, access to social and basic services and the response to natural disasters.

Related Article: BBVA Sets Eco-Friendly Benchmark with New Sustainable Headquarters

Garanti BBVA CEO Recep Baştuğ stressed that climate action and inclusive growth are strategic priorities for the bank, and recalled that Garanti BBVA was the first bank in the world to receive a syndicated loan linked to sustainability criteria in 2020. “With the renewal of this syndicated loan, we will accelerate our work to phase out coal-fired thermal power and coal mining activities. Our bank will continue to provide financing for our country from abroad and support foreign trade through its reputation in international markets and strong financial structure,” he added.