Isbank signs sustainability-linked syndicated loan deal worth USD 832 million
Isbank has signed a syndicated loan deal, its second sustainability-linked deal, of EUR 434 million and USD 328 million on a maturity of 367 days.
The loan deal is worth USD 832 million in total and enabled the bank to renew the deal it closed in November 2020 at a renewal rate of 110%.
Bank of America, Standard Chartered Bank and Commercial Bank of Qatar acted as coordinators for the loan deal signed on November 9, 2021 while Bank of America, Standard Chartered Bank and Sumimoto Mitsui Banking Corporation were sustainability coordinators, and Emirates NBD Bank PJSC was the agent bank.
The total cost of the part of the syndicated loan, which will be used in foreign trade financing, for the highest participating banks was Euribor + 1.75% for the Euro tranche and Libor + 2.15% for the USD tranche.
Having increased the number of participating banks as well as the total participation amount thanks to a higher demand than the loan secured last year with the participation of 37 banks from 17 American, European, Middle Eastern and Asian countries, Isbank has once again confirmed the confidence that international markets put in both the bank and our country’s banking sector.
As part of the second sustainability-linked syndicated loan secured by Isbank, sustainability performance criteria were also determined. If the bank meets its performance criteria such as reducing carbon emissions and increasing the ratio of handicapped-friendly ATMs to the total number ATMs, the costs of the syndicated loan will be ameliorated.
Gamze Yalçın, Isbank Deputy CEO, commented on the syndicated loan. “Our new syndicated loan at USD 832 million in total is our second sustainability-linked syndicated loan following the deal we closed in the first half of the year. Sustainability is at the heart of our business model, which is called ‘Isbank Banking’ and focuses on creating shareable and sustainable assets. It is also one of the focal points of our corporate strategy. This deal includes the performance criteria we have set in consideration of our social and environmental impacts and offers a new example of our responsible banking approach. Crowned as Turkey’s largest private bank in terms of asset size, Isbank will continue to contribute to the development of the national economy by supporting the financing of foreign trade transactions by private companies.”