Garanti BBVA renews its $435 million sustainable syndicated loan
Garanti BBVA announced the renewal of its sustainable syndicated loan. The bank plans to use the loan to finance foreign trade, for general corporate purposes, and to further its commitment to finance investments that support the transition to a low carbon economy. Indexed to sustainable criteria, Garanti BBVA was the first bank in the world to launch a syndicated sustainable loan in 2020.
The sustainable syndicated loan has a 367-day maturity and consists of two separate tranches, the first for $240.75 million and the second for €178.6 million. 46 banks from 22 different countries are participating in the loan, with an interest rate of SOFR + 2.50 percent, and Euribor + 2.25 percent, respectively.
Garanti BBVA CEO Recep Baştuğ underscored that the bank is a pioneer in sustainable finance in Türkiye, and is very happy to renew the loan. “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 noted. The renewal of the syndicated loan will also help to support Garanti BBVA’s decision to phase-out the financing of coal related activities, he added.