Garanti BBVA Completes USD 125 Million Sustainable Subordinated Bond Issuance

The 10-year Tier II bond, which carries a call option exercisable from the fifth year, marks Garanti BBVA’s return to the subordinated bond market after several years and represents a different financing model within the Bank’s funding activities. The transaction holds an important place among Garanti BBVA’s strategic partnerships with international financial institutions.

The proceeds will support the Bank’s capital structure and are planned to be directed toward green and social investments under sustainable finance. On the green side, financing will be provided for electric vehicles, energy-efficient equipment and technologies, and other eligible green investments by micro-enterprises and SMEs, supporting the development of financing opportunities for businesses’ green transition investments. On the social side, the transaction will support women entrepreneurs’ access to finance.

Atıl Özus, Executive Vice President for Finance and Treasury at Garanti BBVA, commented on the transaction: “We consider our longstanding partnerships with international financial institutions important not only for strengthening our Bank’s funding structure, but also for developing new financing models that respond to the needs of the real economy. By supporting our regulatory capital base, this issuance allows us to further diversify our relationships with international institutions and our capital funding channels. Going forward, we will continue to work on new financing opportunities with investors and financial institutions that support our Bank’s strong financial structure and respond to the evolving needs of our customers.”

Sinem Edige, Executive Vice President at Garanti BBVA, said the transaction represents an important step in the Bank’s sustainability efforts: “We see sustainable finance as a key element of our long-term strategy and an important contributor to financing the economic transition. We will use the funding provided through this transaction to support the green transition investments of micro-enterprises and SMEs and access to finance for women entrepreneurs. For us, sustainability is not limited to specific products and financing solutions; it is a holistic approach through which we accompany our customers on their transformation journeys by understanding their needs and providing financing, advisory services and innovative solutions. Coming at a time when BBVA is participating in COP31 as Global Banking Partner, this financing is another important addition to our sustainability efforts. Going forward, we will continue developing solutions that support our customers’ transition investments and help sustainability deliver tangible benefits for the real economy.”

Momina Aijazuddin, Director of the Financial Institutions Group for the Middle East, Central Asia and Türkiye at IFC, said: “This investment builds on IFC’s longstanding and impactful partnership with Garanti BBVA and reflects our shared commitment to sustainable and inclusive growth in Türkiye. By strengthening Garanti BBVA’s capacity to finance micro, small, and medium enterprises, we are helping expand opportunities for women entrepreneurs while supporting businesses investing in the energy transition—helping them grow more sustainably, strengthen their competitiveness, and contribute to Türkiye’s energy transition.”

Gudrun Busch, Senior Director for Financial Institutions and Capital Markets at DEG, said: “We are delighted to partner with IFC in supporting Garanti BBVA’s sustainable finance ambitions in Türkiye. Our joint investment strengthens the Bank’s capitalization and supports financing for green MSME projects and women entrepreneurs. This collaboration is advancing a more inclusive and resilient economy, contributing to Türkiye’s transition to a low-carbon future while generating lasting social and environmental value.”