Garanti BBVA signs first ESG-linked syndicated facility

Turkey's Garanti BBVA has rolled over the syndicated loan it received from international markets and signed loan agreements totalling about $700 million. Both the International Finance Corporation and the European Bank for Reconstruction and Development participated in the deal.

The ESG-linked syndicated loan signed by Garanti BBVA is the first in Turkey to be tied to a bank’s sustainability criteria. According to the terms of the loan, an international independent consultancy firm will periodically evaluate the bank’s performance against the agreed criteria.Interest due is variable, and will be reduced if Garanti BBVA meets or exceeds the criteria.