Garanti Bank and IFC to support “Green Mortgage” projects
Garanti Bank signed a residential mortgage covered bond agreement with IFC (International Finance Corporation), a member of the World Bank Group, with 5-year term maturity worth at USD 150 million equivalent to 540 million Turkish Lira. Garanti issued the first residential mortgage covered bond ever, which is IFC has invested the first time in Turkey as well. Garanti will use the fund to provide green mortgages for the purchases of energy efficient housing, helping to boost the development of green buildings in the country’s housing sector.
Garanti Bank’s CEO Fuat Erbil said, “Garanti Bank recorded groundbreaking transaction with IFC, the first ever residential mortgage covered bond in Turkey to support green mortgages. Garanti Bank is reinforcing its support to sustainable future of Turkey via a USD 150 million equivalent to Turkish Lira Covered Bond issuance. With the first residential mortgage covered bond Garanti has issued ever, we target to contribute the development of energy efficient green buildings and sustainable cities. This transaction once again proved the trust and stability established by Garanti and indeed Turkey among the international financial institutions. Continuing the success of accessing international funding sources and deepening relations, Garanti moves ahead with its vision of being the primary bank of international banks.”
Marcos Brujis, IFC’s Global Director, Financial Institutions Group said, “IFC’s strategy in Turkey aims to provide financing through financial intermediaries and direct investments to scale up energy efficiency projects and sustainable energy finance, reducing greenhouse-gas emissions and promoting sustainable cities. We’re pleased cooperating with Garanti Bank in line with these targets. Diversified and innovative funding instruments in Turkish Lira will help to deepen capital markets and increase investor confidence. Green mortgages offer better borrowing rates for customers, while helping to save energy costs”
Garanti Bank’s CEO Fuat Erbil and Marcos Brujis, IFC’s Global Director, Financial Institutions Group. - Garanti Bank
About IFC. IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with 2,000 businesses worldwide, IFC uses its six decades of experience to create opportunity where it’s needed most. In FY16, its long-term investments in developing countries rose to nearly $19 billion, leveraging its capital, expertise and influence to help the private sector end extreme poverty and boost shared prosperity. For more information, visit www.ifce.org