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Garanti BBVA Renews $435 Million ESG Syndicated Loan

Garanti BBVA Renews $435 Million ESG Syndicated Loan

Garanti BBVA
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Key Impact Points:

  • Garanti BBVA renews its $435M sustainable loan to finance foreign trade and corporate purposes.
  • The loan includes participation from 46 banks across 22 countries.
  • Emphasis on sustainable finance to combat climate crisis and support inclusive growth.

Garanti BBVA has announced the renewal of its $435 million sustainable syndicated loan. This financing will support foreign trade, corporate purposes, and investments aiding the transition to a low-carbon economy. Notably, Garanti BBVA pioneered the world’s first syndicated sustainable loan in 2020.

CEO Recep Baştuğ:With this agreement, we will continue to increase the financing we provide to combat the climate crisis and support inclusive growth, which are strategic priorities for us,” he said. This renewal also supports Garanti BBVA’s commitment to phase out financing coal-related activities.

The loan, with a 367-day maturity, includes two tranches: $240.75 million and €178.6 million. 46 banks from 22 countries are involved, with interest rates at SOFR + 2.50% and Euribor + 2.25%, respectively.

Mahmut Akten, Executive Vice President:Our emphasis lies in crafting more advantageous pricing mechanisms for our clientele within sustainable finance frameworks. Beyond risk mitigation, we support all entities seeking sustainable transformations, leveraging our advisory role and the opportunities we provide,” Akten highlighted.

The terms of the loan focus on three KPIs: annual reduction in scope 1 and 2 GHG emissions, suppliers with emission reduction objectives aligned with the Science Based Targets initiative, and an increase in health and safety training.

Garanti BBVA’s sustainable financing aligns with the UN’s Sustainable Development Goals, particularly climate action and economic growth. The performance targets will be audited independently for transparency.

Volkan Özkan, CFO at Kordsa:Our transformation embodies an ongoing expedition of exploration and innovation centered on technology and sustainability. We operate on the principle of sustainability at every stage of our business. We are confident that the loan agreement with Garanti BBVA International will further fortify our transformation narrative in this aspect,” Özkan stated.

Related Article: BBVA Colombia and IFC Launch First Biodiversity Bond, Raising $50 Million for Environmental Projects

This renewal builds on Garanti BBVA’s history of sustainable finance, including previous loans in 2023 and 2022, highlighting its ongoing commitment to environmental and social impact.

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