Garanti BBVA Coordinates Sustainability-Linked Financing and Hedging Transactions for the Kınalı–Malkara Motorway in Türkiye
Garanti BBVA has served as Sustainability Coordinator on the €400 million Sustainability-Linked Loan (SLL) and the €575 million Sustainability-Linked Interest Rate Swap (IRS) arranged for Limak’s Kınalı–Malkara Motorway Project.
As Sustainability Coordinator, Garanti BBVA led the development and implementation of the sustainability framework underpinning both the financing and hedging transactions. The Bank was responsible for defining the sustainability performance metrics, coordinating the independent Second Party Opinion (SPO) process and supporting the execution of the sustainability-linked structure across the transactions.
The €400 million Sustainability-Linked Loan and €575 million Sustainability-Linked Interest Rate Swap were arranged with the participation of international and domestic financial institutions to support the financing of the Kınalı–Malkara Motorway Project, one of Türkiye’s key transportation infrastructure investments.
The financing structure links sustainability objectives to financial performance indicators with the aim of supporting long-term value creation.
At €575 million, the sustainability-linked IRS represents the largest transaction of its kind in Türkiye. By extending sustainability-linked features beyond loan financing to derivative products, the structure contributes to the further development of sustainable finance solutions in the market. It also embeds environmental and social performance targets into financing arrangements while introducing an innovative model that supports sustainable transformation across infrastructure investments.
At €575 million, the sustainability-linked IRS represents the largest transaction of its kind in Türkiye
Commenting on the transaction, Sinem Edige, responsible for CIB Garanti BBVA, said: “The role of the financial sector in enabling sustainable transformation is becoming increasingly important. Our role in the Kınalı–Malkara Motorway Project reflects our commitment to bringing our sustainable finance expertise to a broader range of products and solutions. By supporting the integration of sustainability considerations into both financing and risk management instruments, we contribute to the development of innovative structures that foster long-term value creation in infrastructure investments. We will continue to develop tailored financing solutions that support our clients’ sustainability objectives while further strengthening our leadership in sustainable finance.”
The transaction highlights the growing role of sustainability-linked structures in infrastructure financing and reflects the increasing integration of environmental and social considerations into large-scale investment projects. Through this transaction, BBVA continues to support the advancement of financing solutions that contribute to long-term economic and social development.