Garanti BBVA, one of Turkey’s leading banks in sustainable finance, has released its 2019 - 2020 Garanti BBVA Green Bond Allocation and Impact Report, in which the bank shares details of how it allocated the proceeds of its green bond issue and reports on the impact of funded projects.
In late 2019, Garanti BBVA issued a 5-year $50 million green bond and used the proceeds to engage in climate action by funding renewable energy projects. The impact has been positive, as found by an independent audit of achievement toward UN Sustainable Development Goals (SGD) 7: Affordable & Clean Energy and 13: Climate Action.
Garanti BBVA, one of Turkey’s leading providers of project finance for renewable energy –especially wind power– uses its international reach to identify global best practices to be adopted and improved, thus contributing to sustainable development locally and globally. The bank further demonstrates its commitment to responsible, sustainable development with this green bond, the first transaction launched by BBVA’s Turkish unit within the Group’s new Sustainable Bond Program. An international sustainability rating agency has certified that the BBVA program is compliant with the Green Bond Principles (GBP).
Garanti BBVA is committed to reporting transparently on its green and climate-related finance, and thus fully discloses which projects are funded by its green bonds issued since 2019. In addition, selected outcome metrics include “share of proceeds used for financing and refinancing purposes,” “balance of allocated vs unallocated proceeds,” “installed renewable energy capacity,” “expected annual renewable energy generation” and “annual greenhouse gases avoided through the financed projects.” The reporting approach is explained in an appendix.
Garanti BBVA will continue to transform the Turkish finance sector to make it more inclusive, responsible and low-carbon, and to provide innovative solutions and finance mechanisms toward achieving the SDGs.