search

TSKB breaks a new ground in the world

28 March 2017
- 3 min Read

TSKB has become the first bank to issue a “Sustainable Tier-II Bond” in international markets, adding yet another innovation to its pioneering practices in the field of sustainable products and services. TSKB's “Sustainable Tier-II Bond” issuance, worth USD 300 million with 10-year maturity, which is a first of its kind with its sustainability aspect, four times oversubscribed in international markets. Suat Ince, CEO of TSKB, stated; “Subordinated Tier II bond issuances are among the key borrowing instruments in the financial world. However, we added a sustainability aspect to what conventional bonds currently offer and designed an innovative product. Being a first of its kind in the world, our issuance oversubscribed four times in the market. This funding we have secured has enabled us to strengthen our equity and we are glad to create additional funding for sustainable investments."

Supporting the transition of the Turkish private sector to a low-carbon and more efficient production level through the theme investment funds it offers, TSKB broke yet another new ground in the field of sustainability in international markets by issuing a ‘Sustainable Tier-II Bond'.

Coordinated by five banks, namely Citigroup, Standard Chartered, HSBC, JP Morgan and Societe Generale CIB, 'TSKB’s ‘Sustainable Tier-II Bond' issuance, worth USD 300 million with a 10-year maturity, oversubscribed four times in international markets. TSKB ran a roadshow in London and Frankfurt to promote the world's first sustainable and Basel III-compliant ‘Sustainable Tier-II Bond' issuance.

Reaching a robust investor base following the road show, TSKB’s ‘Sustainable Tier-II Bond’ received a demand around USD 1.1 billion of which USD 300 million was met. 63% of investors were from the United Kingdom, followed by 20% from Europe, Asia by 7%, and Middle East by 3%, while offshore American investors held a share of 7%.

The funds received from the bond issuance will be used to support renewable energy and resource productivity investments addressing climate change as well as healthcare and education projects for social good. TSKB will annually provide investors with the Impact Report for the projects financed through the funds raised by this bond issuance.

"We Are Glad to Create Additional Funding for Sustainable Investments"

Commenting on the ‘Sustainable Tier-II Bond' issuance, Suat Ince, CEO of TSKB, stated: "Subordinated Tier-II bond issuances are among the key borrowing instruments global banking industry prefers. However, we added the sustainability aspect to what conventional bonds currently offer and designed an innovative product. Our issuance marks the first of its kind in the world and oversubscribed four times in the market. This funding we have secured has enabled us to strengthen our equity. We are glad to create additional funding for sustainable investments."

"Every New Practice We Launch For the Country Represents a New Step in Our Sustainable Development Journey"

Suat Ince emphasized that, as TSKB, they have made remarkable progress, since the Bank has taken sustainable practices on its agenda at a very early stage. "Last May, we issued Turkey's first green bond. Our issuance oversubscribed 14 times in the international markets, than what was originally planned and received awards on highly prestigious platforms such as Global Capital, Bonds & Loans and IFR. In recent weeks, we have published the first integrated report in the Turkish finance industry. The report focuses on the value we create for the economy as well as the society through all capitals we have and shares our future goals with our stakeholders. Today, we break a new ground thanks to our ‘Sustainable Tier-II Bond' issuance. Every new practice we launch for the country represents a new step in our sustainable development journey and motivates us to break further new grounds. I would like to thank all colleagues for their dedicated work and high motivation."

57% of TSKB Loan Portfolio is Comprised of Sustainable Investment Projects

57 % of TSKB's portfolio is comprised of sustainable investment projects including renewable energy, energy and resource efficiency and environmental projects. Since 2002, the Bank has provided a total funding of USD 3.4 billion to 211 renewable energy projects having a total investment amount of USD 9 billion. TSKB mainly focuses on energy efficiency projects in iron and steel, cement, construction, automotive, chemistry and plastics industries. The annual amount of energy, saved in more than 100 energy efficiency projects TSKB has funded as of today, is equal to the annual heating needs of a city with a population of 1.5 million.

TSKB adds value to the country's development through consultancy operations

Since the day it was established TSKB has provided investors with the global theme funds, obtained through the business partnerships it has developed with supranational financial institutions, international development agencies, multinational banks and financial institutions and has been creating value for the country's development via consultancy solutions driven by its expertise in investment banking, project evaluation and sustainable banking.