Garanti BBVA renews its syndicated loan with a focus on social criteria

Two years ago, Garanti BBVA launched the world’s first syndicated loan based on environmental, social and governance (ESG) criteria. It is continuing its pioneering practices in sustainable finance by renewing this loan, which is now indexed on social criteria. The loan will be used to finance foreign trade activities and for general corporate purposes.

The interest rate currently stands at SOFR + 2.75% and Euribor + 2.10%, respectively. The deal received a total request of $743 million, or 125%. As part of the loan agreement, an international audit firm will determine whether Garanti BBVA has succeeded in achieving a series of social objectives. If so, interest rates will be lowered. Goals include the amount of funding given to women-led businesses, micro-SMEs, and inclusion in Bloomberg’s Gender Equality Index.

Garanti BBVA’s CEO, Recep Baştuğ, underlined the importance of sustainable finance for the bank: “We continue to lead the development of the sustainable financial market. For more than 16 years, we’ve turned words into action and set an example for the industry. In this direction, we are happy to renew the syndicated loan linked to sustainability, this time with an emphasis on social criteria.

The renewal of the syndicated loan also underlines the power of Garanti BBVA to create sustainable financing in the foreign financing market. “Our bank has once again proven its leading position in the sector, with its strong network of correspondent banks, its experienced team and its success in job creation”, noted Recep Bastug.

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