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Act. 16 Mar 2022

Garanti BBVA completes the first ESG-related repo transaction

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Garanti BBVA has signed a contract with Standard Chartered for $75 million with a maturity of 370 days. In doing so, it repurchased a repo transaction related to  Environmental, Social and Governance (ESG), realizing the first repo transaction indexed to sustainability performance.

With this new transaction, Garanti BBVA will increase the volume of sustainable finance to TL 2 billion in August 2022 and ensure that all the energy consumed comes from renewable energy sources.

It undertakes to be certified with IREC by providing Garanti BBVA's performance. An international, independent, environmental and social consultancy firm assigned in the loan structure will be evaluated on an annual basis by agreed criteria. The score to be obtained with the first evaluation will be accepted as a base point. In subsequent evaluations, if Garanti BBVA improves its performance and fulfills the criteria it has committed to, interest rates will be cut from above base points.

Garanti BBVA’s Deputy General Manager Aydın Güler recalled that In line with its vision of being the first bank that international banks and investors will want to work with in Turkey, Garanti BBVA maintains a leading position in the industry. “With the first repo transaction indexed to sustainability performance, our bank continues to deal with the issuance of sustainability in different debt instruments as well as syndicated loans.”

With this transaction, Garanti BBVA once again proves its capacity to create sustainable funding in the foreign financing market. Güler mentioned how the bank has signed a contract with Standard Chartered for $75 million with a maturity of 370 days, aimed at combating climate change. He said that “Garanti BBVA supports the sustainable development of our world within the scope of the transition to a carbon-free economy. We are committed to sustainability and have been for more than 15 years.” In continuing to support its projects through diversification, Garanti BBVA “will be a pioneer in the sector in this regard,” he stated.