Business

Garanti BBVA renewed its syndicated loan indexed to sustainability criteria

The syndication loan provided by Garanti BBVA from international markets with a maturity of 367 days, consisting of two separate tranches of $365 million and €247 million, was signed with the participation of 36 banks from 20 countries. The total cost of the loan, which will be used for foreign trade financing and general corporate purposes, was realized as Libor+ 2.15% and Euribor+ 1.75%, respectively. The demand for the syndication process was 133% higher than the target amount of the bank.

Sharing his views on the renewed syndication loan, Garanti BBVA General Manager Recep Bastug said, “Garanti BBVA continues to provide foreign financing to our country and support our real sector with its reputation in international markets and its strong financial structure. We proved once again our ability to make such borrowings under all conditions, with this high demand exceeding our target amount. In addition to the syndication loan we signed, we will continue to be the biggest supporter of our companies in international markets, thanks to our extensive correspondent network and strong foreign trade infrastructure.

In addition, we attach great importance to the place of sustainability, which is one of our strategic priorities, in the way our bank does business and to reflect this in our products and services. We strive to diversify our innovative products, services and resources every year to help our customers adopt more sustainable approaches. In this context, breaking new ground in the world in 2020, we obtained the first syndicated loan signed by a bank, indexed to sustainability performance, and then renewed this structure by taking our sustainability performance criteria one step further in the first half of this year. We are happy to repeat this process by making even more competitive commitments in terms of sustainability before the end of the year. Our syndication cost will be indexed to the use of 100% renewable energy in our locations with suitable infrastructure and the transaction volume we will perform on the sustainable finance side.”

Source: Sabah / Translated by Irem Yildiz

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