Garanti BBVA supports Vezirhan Çimento’s decarbonization efforts
Garanti BBVA is supporting Vezirhan Çimento’s low-carbon transition investments with financing and sustainability advisory services. The sustainability-linked loan covers three investments targeting production efficiency, waste heat recovery, and alternative fuel use.
The bank is financing investments in the development of Vezirhan Çimento Madencilik Sanayi ve Ticaret A.Ş.’s production infrastructure and its low-carbon transition through a sustainability-linked loan (SLL), under which the financial terms of the loan are tied to the sustainability performance targets set for the company.
The financing covers the installation of three systems designed to improve the efficiency and sustainability of cement production: a cement mill, which grinds clinker and other additives into the fine powder required for cement manufacturing, enhancing energy efficiency and operational performance; a waste heat recovery (WHR) system, which captures and reuses thermal energy generated during the production process; and a solid waste preparation and combustion system (ATY), which enables the use of alternative fuels.
Hakan Birhan, Director of Investment Banking and Finance at Garanti BBVA, said sustainability targets acquire real meaning only when they translate into companies’ investment and capital allocation decisions, which is why the structure developed with Vezirhan Çimento links production infrastructure investments to the company’s sustainability performance targets. “Once it is clear which investment will change what, and how progress will be measured, it becomes possible to build the right financing structure,” he said, adding that as the bank heads to COP31 as Global Banking Partner alongside BBVA, it is focused on supporting concrete transition investments that will contribute to Türkiye’s shift to a low-carbon economy.
Financing paired with sustainability advisory
Alongside the financing, Garanti BBVA is providing Vezirhan Çimento with sustainability advisory services, supporting the development of the company’s decarbonization roadmap, the identification of priority transition areas, and the assessment of climate-related risks. This allows the investments to be considered together with the company’s longer-term transition priorities.
In line with its TRY 3.5 trillion sustainable financing target for the 2018–2029 period, Garanti BBVA continues to support the low-carbon transition of the real economy through financing solutions and sustainability advisory services.